The rate of the single European currency has been demonstrating a downward trend.
At the start of the trading session on Monday the EUR/USD currency pair slid to a 3-month low of one dollar and 29.6 cent.
Investor interest was also muted by the outcome of the elections in France and Greece. The elections brought a fresh turmoil in the Eurozone, so the euro grew riskier.
It should be said that the elections in both countries were won by opposition leaders.
In France Nicolas Sarkozy conceded defeat to Socialist Francois Hollande. The president-elect of France is promoting easing austerity, which actually contradicts the EU fiscal pact with its 3% budget constraint.
The new president of France intends to rehabilitate the national economy by stimulating growth. His actions may well reverberate across the entire Eurozone.
Speaking about Greece, the parliamentary elections in this country ended up with a victory of the Party supporting the reforms drafted by the European Troika. Before the Greece bailout deal was agreed, the Greek Opposition party had promised the EU, European Central Bank and International Monetary Fund to back austerity measures designed to tackle the crippling debt crisis. Will the new government deviate from the fiscal commitments? We will keep track of further developments.
