The euro has dropped 0.5%, falling alongside European equity futures and French bonds after Macron called a snap vote in a bid to halt gains for the far right Le Pen. The right has done well in Europe - in Germany the Social Democrats suffered a record defeat and in Italy, Meloni's party appear to have won.
Outside of European elections, the strong US jobs data on Friday has perhaps led to a rethink on the Fed's rate cuts with eased concern over an economic shutdown - this theme has shaped trading activity so far today. 10y treasury yield advanced for a third day, and with the expectations of a soft landing in the US, Asian equities are doing well too.
In commodities, Oil has edged up slightly as the market still digests OPEC+'s move to restore supply. Traders are looking ahead to a set of industry reports and, of course, the Feds decision on rates on Wednesday.
We are light on the data front today but we have some big data points later in the week including:
- UK jobless claims tomorrow
- UK monthly GDP Wednesday
- FOMC decision Wednesday
- US jobless claims, Thursday
- Japan rate decision, Friday
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