EUR/JPY retreats from 176.25 highs after France's PM resignation

• The Euro retreats from 176.25 highs but remains contained above 175.00.
• France's Prime Minister Lecornu's resignation has sent the Euro tumbling.
• Previously, the victory of Takaichi in Japan's ruling party's elections had triggered a sharp Yen sell-off.
  

The Euro has taken a beating on Monday, following the unexpected resignation of France's Prime Minister Sébastien Lecornu. The EUR/JPY has wobbled from long-term highs at 176.25 to 174.95 before returning to the mid-range of the 175.00s.

France's President's office rattled markets on Monday, announcing the resignation of the recently appointed Prime Minister Lecornu, only a few hours after the new cabinet was revealed.

Lecornu was the fifth prime minister in the last two years, and his resignation plunges the country into a political crisis that is threatening to drag President Macron. France's opposition parties, particularly those on the right and left wings of the political spectrum, are calling for snap elections.

Before that, the Euro had jumped about 300 pips from levels right above 173.00 on the back of broad-based Japanese Yen weakness, following the election of the pro-stimulus Sanae Takaichi as the new leader of the governing Liberal Democratic Party.

Investors' expectations that Takaichi will pursue an expansive monetary policy and a looser monetary policy have put into question the Bank of Japan's monetary tightening plans and sent the Japanese Yen tumbling across the board.