(Corrects 6th paragraph to make clear only one-month implied
vol hit highest since just after Brexit vote)
* Euro pressured by French election uncertainty
* U.S. dollar net long positions at 5-week low-IMM data
* U.S. jobs growth falls short but trend seen intact
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Ritvik Carvalho
LONDON, April 10 The euro edged lower against
the dollar on Monday, pressured by nervousness over the upcoming
French presidential elections as investors took stock of recent
polls showing a tightening race.
The campaign is being closely followed by investors, as one
contestant -- the far right Marine Le Pen -- has threatened to
pull France out of the European Union if she wins, fuelling
concerns of an unravelling of the bloc after Britain's vote to
leave it last year.
The euro was 0.1 percent lower at $1.0585 in morning London
trade, hovering above its lowest level in a month -- $1.0570
"There's a general unease I would say ... we are seeing in
the (French) opinions polls that the race appears to be
tightening," said Alvin Tan, currency strategist with Societe
Generale in London.
Polls have for weeks shown Le Pen and centrist Emmanuel
Macron on track to top the first round of voting on April 23 and
go through to the May 7 runoff.
Euro/dollar implied volatility, from one week to one year,
touched its highest since just after Britain's Brexit vote
The dollar was slightly lower in European trade after
touching three-week highs against a currency basket in Asia.
Analysts said the move in Asia was a continuation of Friday
when a U.S. Federal Reserve official reinforced the central
bank's commitment to keep raising interest rates.
New York Fed President William Dudley said the Fed might
avoid raising interest rates at the same time that it begins
shrinking its balance sheet, prompting only a "little pause" in
the central bank's rate hike plans.
The dollar index, which tracks the greenback against six
major currencies, was flat at 101.22 after rising as high
as 101.340, its highest since March 15.
The dollar was up 0.3 percent at 111.35 yen.
Geopolitical tensions in Asia were also in focus, after the
U.S. decision to move a Navy strike group toward the Korean
peninsula following a provocative missile test by North Korea.
"There are still geopolitical concerns, such as the Syrian
situation, in the background, and there are no fresh incentives
or reasons to buy the dollar," said Kumiko Ishikawa, FX market
analyst at Sony Financial Holdings in Tokyo.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Reporting by Ritvik Carvalho; additional reporting by Tokyo