* Euro hits 3-week low of $1.0650
* Investors look forward to U.S. jobs report on Friday
* Speculators trim net long dollar positions -IMM data
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Ritvik Carvalho
LONDON, April 3 The euro hit a three-week low
against the dollar on Monday as mixed economic data coming out
of Europe added to existing worries about political risk in the
continent, driving investors to sell the single currency.
After moving in positive territory during morning trade in
Europe, the euro turned lower minutes after noon in London,
falling to a three-week low of $1.0650.
Despite increasing activity at the fastest rate in nearly
six years, factories across the euro zone struggled to keep up
with demand last month, according to a survey that showed them
again hiking prices.
France will vote in a two-round presidential election at the
end this month and at the start of May, with investors worried
by the risk that the far-right anti-EU Marine Le Pen could stage
a surprise victory.
Polls show Le Pen seeing off her rivals in the upcoming
first round of the French presidential elections, but being
beaten in the run-off vote.
"Investors are still realising that the risks going into the
French elections are still quite considerable, so there's no
real opportunity to express any bullish view on the euro at this
stage," said Valentin Marinov, head of FX strategy at Credit
Agricole in London.
The dollar index - which measures the greenback
against six major rivals - inched up to 100.64, just below a
three-week high, leaving it up 0.1 percent on the day.
Data on Friday showed investors reduced bets on dollar
strength for the first time in four weeks in the week up to last
Markets were eyeing the U.S. non-farm payrolls report due on
Friday for clues on the likely pace of interest rate rises from
the U.S. Federal Reserve.
"The real focus is going to be in the week ahead given how
much data we have coming out ... which of course is absolutely
key in trying to assess whether we will see another hike from
the Fed in June," said Rabobank currency strategist Christian
Lawrence in London.
A spate of mixed U.S. economic data on Friday reinforced the
Fed's view that the economy is growing at a steady but not rapid
Investors also parsed comments from Fed officials on Friday,
some of which pressured the greenback. Markets are currently
pricing in more than a 50 percent chance that the central bank
will hike interest rates at its June meeting, the second of the
three increases expected this calendar year.
For Reuters Live Markets blog on European and UK stock
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(Additional reporting by Tokyo markets team; Editing by Tom