ICYMI, French President Macron called a snap election just in time for the opening of Asian FX in super-ultra-thin liquidity on Monday:

EUR/USD continued its dribble lower during Europe/UK/US trade but has managed some recviery. Movement has been small only though.

Commerzbank analysts on the events:

  • European unification “appears gradually more fragile”
  • “The euro suffers when the question arises as to whether a politically created transnational currency can survive in the long term if the political framework conditions change”
  • “So far, the rampant euro skepticism has not caused any significant damage to the euro. However, the risk that this will not remain the case increased yesterday. Only marginally, but to a visible extent”

EUR/USD update:

eurusd french election risk 11 June 2024 2