Euro eases on French poll gridlock, dollar sluggish after US payrolls
Istanbul, July 8 (Hibya) - The euro slipped on Monday after projections from France’s election pointed to a hung parliament amid an unexpectedly strong showing for a left-wing alliance, spawning fresh uncertainty over the country’s fiscal outlook.
The dollar's position remained weak following the release of Friday's U.S. payrolls data, which revealed a surprisingly soft job market. This development has led to increased speculation that the Federal Reserve may initiate interest rate cuts as early as September.
The yen was on track for a third consecutive day of gains, rebounding from last week’s nearly 38-year low against the dollar. Meanwhile, the British pound rose to a 3-1/2-week high against the U.S. dollar. This upward trend in the British currency is a direct result of the Labour Party’s landslide victory in the recent election, which marked the end of 14 years of Conservative rule.
The euro was 0.06 percent lower at $1.0827 and slid as much as 0.4 percent as investors weighed the consequences of a hung French parliament.
The dollar index, which measures the U.S. currency against the euro, sterling, yen, and three other major rivals, was flat at 104.97. It is licking its wounds after a 0.9 percent slump last week, exacerbated by Friday’s softer U.S. jobs market reading.
The dollar slipped 0.07 percent to 160.70 yen, down from as high as 161.96 on Wednesday. Sterling edged back 0.08 percent to $1.2804 after rising to $1.2820 for the first time since June 12.
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