Gains for French far-right in the vote for European lawmakers prompted Macron to call the snap election as he seeks to halt the rise of his rival, Marine Le Pen. While German Chancellor Olaf Scholz also suffered humiliating losses, centrists parties across the bloc mostly held ground.

The euro was already on the backfoot heading into the week after suffering its biggest loss in almost two months on Friday as stronger-than-expected US jobs data lifted the dollar. Focus will now turn toward Federal Reserve policymakers updating their rates forecast on Wednesday, with traders being less optimistic about the prospects for policy easing.

The impact of the European elections on the euro “will remain short-lived but a hawkish Fed outcome this Wednesday could prove harder to shake off,” Ipek Ozkardeskaya, an analyst at Swissquote Bank, said in a note on Monday.

Meanwhile, the dollar edged higher while US equity futures contracts held steady. The yield on 10-year Treasuries advanced for a third day.

MSCI’s Asia-Pacific stock index was slightly lower, while traders were also focused on India as Prime Minister Narendra Modi is set to outline portfolios for his cabinet later Monday.