RTTNews - The euro saw weakness against other majors on Monday in New York after victories by conservative parties in European Union elections signaled a new order in EU politics. The European currency hit its lowest level in 1 1/2 weeks against the buck and also slipped against the sterling and yen.
The single currency continued to move away from a multi-month high against the dollar, which has seen recent strength across the board after a month of woes. With global stocks moving lower on Monday morning, risk appetite was diminished, leading traders to lower-yielding currencies.
Many of Europe's left-leaning ruling parties struggled at the polls, while in Germany Angela Merkel's Christian Democrats enjoyed a resounding victory, and in France Nicolas Sarkozy's UMP party defeated opposition socialists. In the UK, Gordon Brown's Labour Party suffered a dismal result, putting his leadership in jeopardy.
The euro continued to slip against the U.S. dollar, hitting an 11-day low of 1.3804 against the euro, compared to the five-month high of 1.4338 from last week.
The euro dropped to a four-day low of 0.8668 against the British pound. Last week, the common currency reached a 2 1/2-week best of 0.8866.
Monday, the Bank of England set out proposed extensions for its Asset Purchase Facility. The central bank intends to introduce in the near future a Secured Commercial Paper Facility to support the provision of working capital to a broad population of companies.
The European currency also inched slightly lower against the yen, moving near 136.60 in the early afternoon. Last week, the euro hit a multi-month high of 139.21.
The current account in Japan came in at an unadjusted surplus of 630 billion yen in April, the Ministry of Finance said in a preliminary report on Monday - down 54.5 percent on year and falling for the 14th consecutive month.
On the economic front, German factory orders stayed flat in April on a monthly basis, compared to March's revised growth of 3.7%. Domestic orders were up 0.6%, while foreign orders slipped 0.5%.
For comments and feedback: contact email@example.com