The euro fell to its lowest in a month after French President Emmanuel Macron called a snap vote in the wake of European Parliament elections. Asian currencies declined on the heels of a strong US jobs report from Friday.
“The EU is facing a historically challenging time with both internal and external ‘cracking’ in systemic issues that require increased – not decreased – cooperation,” according to a Skandinaviska Enskilda Banken AB note to clients. “Difficult negotiations now await” for heads of state and government.
The yield on 10-year Treasuries advanced for a third day, while the South Korean won and the Malaysian ringgit slid. MSCI’s Asia-Pacific stock index was slightly lower. Traders were also focused on India as Prime Minister Narendra Modi is set to outline portfolios for his cabinet later Monday. The latest US jobs figures highlight a labor market that continues to defy expectations and blunt the impact on the economy from high interest rates and prices.