Euro Drops & Stocks to Fall Following Macron’s Setback. – Asia Market Wrap

The euro plummeted to its lowest level in a month after French President Emmanuel Macron proposed a quick election following the European Parliament elections. Asian currencies fell on Friday’s solid US jobs report.

The euro fell by up to 0.5%, along with futures for European stocks and French bonds. Gains for a far-right party in the vote were expected, prompting Macron to call a snap legislative election in his country in an attempt to halt the ascent of his far-right challenger Marine Le Pen.

German Chancellor Olaf Scholz’s Social Democrats suffered a historic defeat, while Prime Minister Giorgia Meloni’s right-wing party appeared to win in Italy.

Investors may learn more about the Fed’s intention to soften monetary policy when US policymakers update their interest rate predictions on Wednesday. The Bank of Japan’s next announcement is expected on Friday, and economists expect it to maintain policy stability.