Euro reverses after hitting six-month high on Macron victory

U.S. dollar and Euro notes are seen in this

"Over the next couple of months, the market will turn its attention back to the economy, back to the debate about whether the European Central Bank can lift some of its accommodation perhaps early next year", Foley said.

European equities dipped, with French shares, which hit 9 1/2-year highs on Friday, underperforming the wider market. Macron's overwhelming win on Sunday briefly pushed the euro sharply higher against the greenback, the highest since the USA presidential election in November.

"The euro has had two successive positive weeks on the back of the expectation that Emmanuel Macron would win", said Michael Hewson, chief markets analyst at CMC Markets in London, who said markets had largely priced in Macron's victory.

"Investors will now go back to the basics of watching the underlying eurozone economic and inflation data and what implications it may have for monetary policy", said Iain Stealey, a fixed income portfolio manager for JPMorgan Asset Management.

The French centrist's defeat of nationalist Marine Le Pen spelled relief for investors who had feared another populist upheaval after Britain's vote to exit the European Union and Donald Trump's shock election as US president.

The annual increase in average earnings was held to 2.5% and, although markets continued to expect a rate hike at the June meeting, there were further doubts surrounding increases over the second half of 2017. Tokyo shares, resuming trade after a three-day market holiday, closed up 2.3% at a 17-month high.

The pan-European STOXX 600 index was down 0.1% while France's CAC 40 index fell 0.6%.

In the United States, pre-market stock futures are lower with the S&P futures -3.0 points.

In early Asian trading the euro rose as high as $1.1024, its highest since November 9. This was the lowest level after the first round of the French elections.

The dollar index, which tracks the US currency against a basket of six major rivals, added 0.2 percent to 98.812, after dipping as low as 98.543 earlier, its lowest since November.

Immediate support was found around $0.7383.The Aussie slipped 1 percent last week for the third consecutive week of decline, having dropped around four cents since a peak in late March.

Yields on lower-rated southern European government debt, seen most vulnerable to a reduction in the pace or scale of the ECB stimulus that has suppressed borrowing costs, rose.

10 year yields in Europe are mixed. Oil prices, which hit nearly six-month lows last week on worries about a global glut of crude, edged up after OPEC hinted there could be an extension to the current production cuts, which expire in June. Even strong trade data from China, Australia's top export market, combined with a 1.4 percent rise in Australian jobs ads in April and improving local business confidence and conditions failed to reverse sentiment.

Gold, often sought as a bulwark against risk, rose 0.3% to $1,231 an ounce.

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