The primary currency pair continues to plummet on Monday. The current EURUSD exchange rate stands at 1.0795.
The euro faced two substantial pressure factors. Firstly, there were political developments in France, where the pro-presidential forces lost the European Parliament elections to the far-right. French President Emmanuel Macron called snap elections after his party’s defeat to Marine Le Pen’s far-right, which crushed it by nearly half.
Secondly, investors have adjusted their expectations about the Federal Reserve interest rate trajectory following Friday’s US employment market statistics. In anticipation of the Federal Reserve meeting this week, the impact of such a driver is considerably strong.
Non-farm payrolls expanded by 272 thousand last month from the previous 165 thousand, while the unemployment rate increased to 4.0% from 3.9% in April. Average hourly earnings rose by 0.4% m/m in May, twice as high as the April reading.
The EURUSD pair will experience very high volatility this week.