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11/06/24
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EUR Lower After Macron Calls Snap Election
On Monday, the euro was lower for the third straight day and has fallen 1.3% since last Thursday. EUR/USD traded at about 1.0731, down 0.32% for the day in the European session.
There will be no releases out of either the US or the eurozone today.
The weekend in Europe was busy as citizens voted in the elections for the European Parliament. The far-right parties gained, including in France and Germany. Although this result was not surprising, President Macron of France shocked the country after the election results when he said a snap election would take place on June 30 and July 7.
Although Macron’s job is not on the line, he is taking a huge risk as the election may bolster the far right as it did in the EU Parliament vote. The next several weeks’ uncertainty in France may push the euro lower.
Germany will release May’s final estimate for inflation on Wednesday. The preliminary estimate showed CPI rose by only 0.1% m/m after April’s gain of 0.5%.
In April, the preliminary estimate rose from 2.2% to 2.4%yearly. Germany has forecast an inflation rate of 2.4% for this year and the ECB will be watching inflation in Germany and the eurozone carefully after cutting rates last week.
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