(Updates prices, adds comment, changes byline, dateline;
* Euro struggles after Le Pen launches campaign
* Dollar down vs yen as U.S. yields fall
* Aussie slips on weak retail sales data
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 6 The euro fell to a one-week low
against the dollar on Monday on concerns over French politics
ahead of the presidential vote in April as well as other
impending elections in Europe in a year of political
"Political risk is serving to dampen the euro after last
week's stumble from the $1.08 area," said Shaun Osborne, chief
FX strategist, at Scotiabank in Toronto.
German factory orders rose 5.2 percent in December, the
biggest monthly increase in 2 1/2 years, but the data had little
Investors were largely focused on French politics, as
far-right National Front leader Marine Le Pen launched her
presidential bid, vowing to fight globalization and take France
out of the euro zone.
In Italy, another presidential election looms even as former
Italian prime minister Matteo Renzi said he was willing to
shelve his push for early voting.
In mid-morning trading, the euro fell 0.5 percent against
the dollar to $1.0733. It dropped to $1.0705, its weakest
level since Jan. 31.
The dollar, however, slid to its lowest in more than two
months against the yen, pressured by a drop in U.S. Treasury
yields, analysts said. The spread between U.S. two-year and
Japanese two-year debt yields contracted to around 139 basis
points on Monday, the narrowest in about two weeks, a positive
for the yen.
PRESSURE ON DOLLAR
The dollar slipped 0.2 percent to 112.42 yen, and had
earlier fallen to 112 yen, its weakest level since late
"A break of 112.00 yen to the downside in dollar/yen...would
signal a more significant correction of the dollar rally,
indicating that the greenback is no longer a sure way bet to
rise this year," said Boris Schlossberg, managing director of FX
Strategy, at BK Asset Management in New York.
The Australian dollar was the other biggest mover among the
G10 currencies after weak retail sales numbers. It
was last down 0.6 percent at US$0.7636.
Robust equity markets and the strength of U.S. economic data
continue to back the bullish dollar calls that dominated at the
end of last year, analysts said.
But a lack of details on expected pro-dollar tax and
spending initiatives by the administration of U.S. President
Donald Trump, combined with concern over the Trump White House's
attitude to the dollar and global trade and security, has kept
the currency on the back foot, for now.
"I'd like to hope that we naturally go back to buying the
dollar, that seems the logical argument underneath it all," said
Richard Benson, co-head of portfolio management with currency
fund Millennium Global in London.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Patrick Graham in London; Editing by Bernadette Baum)