Euro Falls On French Election Jitters

The euro declined against its major opponents in the European session on Monday, as rising popularity of the far-left politician Jean-Luc Melenchon in opinion polls indicated a tightening race in the upcoming French presidential elections.

According to Kantar Sofres Poll released over the weekend, the front-runners far-right leader Marine Le Pen and independent contender Emmanuel Macron were running neck and neck with 24 percent of the votes in the first round of voting on April 23.

The survey showed a surge in support to Left Front candidate Jean-Luc Melenchon with 18 percent of votes, up from 6 percent in mid-March, stoking uncertainty over the outcome less than two weeks before polls.

The shift in the balance of support to Communist-backed Melenchon fueled concerns over Macron's campaign in the race as well as France's future in the currency bloc.

Survey data from Sentix showed that Eurozone investor confidence strengthened to the highest level in almost a decade in April.

The investor sentiment index climbed unexpectedly to 23.9 in April from 20.7 in March. The reading was forecast to fall to 20.2.

The currency showed mixed performance in the Asian session. While the euro declined against the franc and the greenback, it rose against the yen. Against the pound, it held steady.

The euro hovered near a 5-week low of 1.0570 against the greenback, compared to Friday's closing value of 1.0589. The next possible support for the euro-greenback pair is seen around the 1.04 region.

The euro that ended last week's trading at 0.8557 against the pound slipped to a 4-day low of 0.8524. The euro is seen finding support around the 0.84 level.

The euro pared gains to 117.59 against the yen, from a high of 118.06 hit at 1:45 am ET. If the euro extends fall, 116.00 is possibly seen as the next support level.

Survey results from the Cabinet Office showed that Japan's current economic assessment as well as expectations weakened unexpectedly in March.

The current conditions index fell to 47.4 in March from 48.6 in February. The score was forecast to fall to 49.8.

The single currency dropped to 1.4131 against the loonie, its lowest since March 3. Continuation of the euro's downtrend may see it challenging support around the 1.39 mark.

The euro retreated from an early high of 1.5277 against the kiwi and edged down to 1.5225. On the downside, 1.50 is likely seen as the next support level for the euro-kiwi pair.

On the flip side, the euro bounced off to 1.0690 against the Swiss franc, from a 6-day low of 1.0673 hit at the commencement of today's trading. The euro is likely to challenge resistance around the 1.08 mark.

Looking ahead, the U.S. labor market conditions index for March is set for release in the New York session.

At 4:10 am ET, Fed Chair Janet Yellen speaks at the University of Michigan, U.S.