The European currency manages to jump further ahead of the dollar even in the midst of the French election. The euro opened on a slight advantage as investors hope to get onboard the common currency; while the Swiss francs also manages to hit a record two-week high entering today’s market. French election still continues to pressure the currency, and investors are still on the look-out for possible safe havens.
The EU’s common currency manages to hover just around a half of a percent against its tightest rival, the dollar. The currency is set to have its best week if the increases continue to crash as the week sits closely to its dawn; it is estimated to trade at $1.0743 or a total of 0.5321% increase today.
The currency manages to make a new history by topping its strongest gain for the year last March 28 at $1.0778, while having a humongous leap from Wednesday’s $1.0712. On the other hand, the GBP traded in premium for the first time in five months.
Euro Benefits From Election Data
Euro has been slowly lingering on the political figures lately; it manages to haggle investors after election polls and data surfaces pre-market hours. According to Stephen Gallo, a strategist from the BMO, “short euro is still one of the larger positions out there. No risk on the table means take some of that off. So you would take off your euro shorts, take off your short OAT positions and put your money under the mattress."
Gallo also mentions that there were still fundamental reasons, not just the French election, which may have boosted the currency and caused it to hit a record high for the year. The dollar versus euro premiums manages to harbor some light from the situation; their one-week tenor surpassed that of the one-month tenor for the first time today.
Election Poll Results
The latest poll and election data reveal that Macro rises as the top candidate for the election, this being said, the euro manages to keep a steady pace against the yen as it sits on a four-day high. EUR/JPY is up by a whopping 1.9% this week while
Market Analyst Joshua Mahony of IG noted that “The best case scenario for the euro would be a Macron-Fillon run-off, while the worst case would see Le Pen and Melenchon fighting it out in the second round.”
US Dollar Index Down
The dollar index, which measures the dollar’s strength among other major currencies opened the day with a bit of a hedge and stumbles as it traded 0.1% at 99.617; the largest blow it received was from the Swiss franc which reached a two-week high against the greenback.
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