Euro Slips Amid French Election Uncertainty; Dollar and Yen in Focus

The euro dipped following projections of a hung parliament in France's election, casting uncertainty over the country's fiscal future. The dollar remained weak after soft U.S. payrolls data, fueling rate cut expectations. The yen gained for the third day, while Sterling rose following Labour's significant election win.

The euro experienced a drop on Monday in response to projections from the French election suggesting a hung parliament, which adds fresh uncertainty to France's fiscal outlook.

Meanwhile, the dollar struggled after unexpectedly weak U.S. payrolls data released on Friday reignited speculations that the Federal Reserve might cut interest rates as soon as September. On the other hand, the yen marked its third consecutive day of gains, bouncing back from last week's near 38-year low against the dollar.

Sterling climbed to its highest level in three-and-a-half weeks against its U.S. counterpart, bolstered by the Labour Party's sweeping election victory that ended 14 years of Conservative rule in the UK. The euro was down 0.06% at $1.0827, having dropped as much as 0.4% earlier as investors assessed the implications of a hung French parliament. Projections showed the leftist New Popular Front (NFP) leading unexpectedly, while Marine Le Pen's National Rally, previously the favorite, lagged behind.

(With inputs from agencies.)