The Euro fell to its lowest level in a month on Monday, slipping 0.5% to $1.0753, following French President Emmanuel Macron's heavy defeat at the European elections and the dissolution of the French Parliament.
In an unplanned televised address on Sunday, Macron acknowledged a "poor result for political groups that defend Europe" in the European elections. A staunch supporter of the EU, he recognised substantial gains made by the far-right and said that their rise in recent years runs counter to the progress of the Union.
Macron then announced a shock snap election in France in response to his party's disappointing results and far-right party the National Rally winning over 30% of the votes. During his address, he confirmed that the first round would be held on 30 June and the second round on 7 July.
As a result, the euro fell broadly and French bonds and stocks were hit hard on Monday. The euro fell 0.5% in early European trade to a one-month low of $1.0753 and slumped to a 21-month trough against sterling of 84.53 pence.
Elsewhere in Europe, German Chancellor Olaf Scholz's Social Democratic Party also suffered a defeat, while the far-right Alternative for Germany (AfD) became the country's second political power, behind the Christian Democrats.
