The euro strengthened on Monday as market players focused on the upcoming disclosures announced by the European Central Bank in order to combat things holding back growth in the European bloc. Among them is the political turmoil in France at this point after President Emmanuel Macron lost an absolute majority in the country’s parliamentary elections.
The Macron Ensemble won the most seats in the Senate but failed to achieve the absolute majority needed to control parliament.
Analysts and markets are currently not paying much attention to the political turmoil but the focus is on the European Central Bank's attempts to curb borrowing costs in the south of the European Union and the global monetary policy outlook.
According to Ingvild Borgen Gjerde, FX analyst at DNB Markets, "There are two things that are very important to the euro: What kind of solution tools will be put forward that can be realized by the ECB and the outlook for monetary policy."
Last week, the European Central Bank promised to devise a new anti-fragmentation tool that should provide new support for the southern edge of the bloc in paying off debt when the ECB raised interest rates for the first time since 2011.
The Euro strengthened 0.22% to the trading level of 1.0521. The US dollar index, which measures the US dollar against six major currencies, sustained 0.24% to trade level of 104.235.
The dollar lost 0.6% to 0.96335 Swiss francs, while sterling rose 0.4% to $ 1.2273.
Bitcoin the major cryptocurrency changed little by trading at $ 20,600.50, up more than 5% from the lowest level enjoyed during the day.
Fed Chairman Jerome Powell will testify before the Senate and House on Wednesday and Thursday this week.
