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The EUR\/JPY pair falls sharply to 168.50 in Monday\u2019s New York session as political uncertainty in the Eurozone prompted by French President Emmanuel Macron\u2019s decision of dissolving parliament and calling for a snap election weighed heavily on the Euro<\/a>.<\/p>\n The decision came after exit polls for European parliamentary elections indicated that Marine Le Pen\u2019s far-right National Rally (RN) scored 32%-33% seats under the leadership of the party\u2019s president, Jordan Bardella, which was more than double from Macron\u2019s centrist list. This has triggered upside risks to change in government, which spawns uncertainty over the continuation of current fiscal policies.<\/p>\n Meanwhile, the absence of support for subsequent interest-rate cuts by European Central Bank (ECB) policymakers has failed to offer some cushion to the weak Euro. In the European session, ECB policymaker and Slovakian central bank Governor Peter Kazimir also said that the central bank should not rush into another rate cut as progress in disinflation appears to be bumpy in the next few months.<\/p>\n ECB<\/a> policymakers worry that wage growth will continue to remain firm, which could boost consumer spending and slow the progress in inflation declining to the bank\u2019s target. Meanwhile, a weak Euro is also expected to spur inflationary pressures by making Eurozone exports competitive in the global market.<\/p>\n On the Tokyo front, investors await the Bank of Japan\u2019s (BoJ) monetary policy decision, which will be announced on Friday. The BoJ<\/a> is expected to leave\u00a0interest rates<\/a> at their current levels but reduce asset purchases to maintain progress towards policy normalization.<\/p>\n