The euro hovers near its low as the market broadly awaits a rebound of the dollar.

On Monday,What knowledge do you need to know about foreign exchange trading? the dollar was strong, while the euro hovered near a more than one-month low amid European political turmoil, as investors awaited new signs of a strengthening U.S. economy.

Investors are weighing the risk of a budget crisis in the eurozone's core as far-right and far-left parties gain momentum ahead of France's parliamentary elections, putting pressure on French President Emmanuel Macron's centrist government.

Despite a severe sell-off in French financial markets over the weekend, five sources told Reuters that European Central Bank policymakers have no intention of discussing plans for emergency purchases of French bonds.

The euro edged down 0.04% to $1.07025, after falling to $1.06678 on Friday, its lowest level since May 1. Last week, the euro also posted its biggest weekly decline since April, at 0.88%.

Despite the political turmoil's adverse impact on the euro, "since the euro accounts for about 57% of the dollar index, the euro's decline indirectly benefits the dollar," said Matt Simpson, senior market analyst at City Index.

The dollar index, which measures the dollar against a basket of major currencies, was flat at 105.54, after hitting its highest level since May 2 on Friday at 105.80.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said on Sunday that the U.S. central bank might cut rates once this year, with a likely move in December.

Last week, the latest projections from the Federal Reserve showed the median expectation of 19 Federal Reserve officials for one rate cut this year.

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