The US dollar maintains its gains as far-right parties claim victory in European Union elections.
The US Dollar (USD) edged higher and extended its advance on Monday, following positive May Nonfarm Payrolls data released on Friday. The key reason for the second leg upward is the European elections held over the weekend, which saw Far Right parties gain power in the European Union (EU). French President Emmanuel Macron and his ruling coalition were so devastated by the results that they called a hasty election. Elections are scheduled for June 30 with a runoff on July 7.
Moreover On the economic front, the week has started out pretty calmly. On Wednesday, the spotlight will be on the US Consumer Price Index (CPI) release for May and the US Federal Open Market Committee (FOMC), which will deliberate on the Federal Reserve’s (Fed) monetary policy interest rate and release a new dot plot and economic projections.
Daily Market movers: EU elections have minimal influence on US Dollar.
On Sunday, the European election results were revealed, with some major takeaways.
Furthermore French President Emmanuel Macron saw his party finish third, far behind the two parties that received the most votes. This compelled President Macron to call for hasty elections.
In Italy, the Far The party of incumbent Prime Minister Giorgia Meloni received another significant number of votes, cementing the Far Right’s successes in Italy.
The US Treasury will work on Monday with three bond allocations:
At 15:30 GMT, a 3-month and 6-month bill will be issued.
At 17:00 GMT, a 3-year bond will be auctioned.
Moreover Equities are down across the board, particularly in Europe. The Euro Stoxx 50, the European equity benchmark, is down more than 1%. US market futures are just marginally down.
There has been a significant movement in Fed rate drop predictions for September. According to the CME FedWatch tool, 30-day Fed Funds futures price data indicate a 49% possibility that interest rates will be lower than the present level in September, down significantly from the 59.6% recorded a week before.
The benchmark 10-year US Treasury Note hits a new seven-day high of 4.46%.
