EURO DROPS AMID HIGH ENERGY PRICES AND STREET RIOTS IN FRANCE

What happened: The euro fell on Monday as high energy prices compounded concerns over political stability in France, where weekend riots and looting amounted to some of the country's worst unrest in years. Why it matters: Analysts said the euro tends to come under sustained pressure only if French political tensions spill beyond national borders and weigh on eurozone sentiment. Commerzbank's Thu Lan Nguyen said the dollar will struggle to fully capitalise on higher oil prices as long as markets do not expect a forceful Fed response.

The euro fell on Monday as high energy prices compounded concerns over political stability in France, where weekend riots and looting amounted to some of the country's worst unrest in years.

Analysts said the euro tends to come under sustained pressure only if French political tensions spill beyond national borders and weigh on eurozone sentiment. Commerzbank's Thu Lan Nguyen said the dollar will struggle to fully capitalise on higher oil prices as long as markets do not expect a forceful Fed response.