News

Euro dips after jumping higher on Macron win

goldcruderesearch
The euro gave up gains on Monday after rising to multi-month highs against the other major currencies in the aftermath of Emmanuel Macron’s convincing win over far-right Marine Le Pen in the French presidential election.
EUR/USD dipped 0.17% to 1.0979 by 07.08 GMT after rising as high as 1.1022 overnight, the strongest level since early November.
The victory for pro-EU centrist Macron signaled that political risks in France and across Europe are receding, in the wake of the populist surge which resulted in Brexit and propelled Donald Trump to the White House.
The euro fell back as gains had already been priced in after Macron’s strong showing in the first round of voting two weeks ago.
Investors were also turning their attention to the difficulties Macron will face in implementing his economic program, which includes labor market reforms.
EUR/JPY was down 0.38% at 123.5 after touching one-year peaks of 124.49 overnight.
The dollar was a touch lower against the yen, with USD/JPY at 112.65, off an overnight high of 112.95.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% at 98.63 after falling to an overnight low of 98.47.
The French election overshadowed Friday’s U.S. jobs report, which showed that the economy added 211,000 jobs last month, beating expectations for a gain of 185,000 and the unemployment rate ticked down to 4.4%, a near a 10-year low.
The report also showed that the prior month’s figure of 98,000 was revised down to an even lower 79,000.
Average hourly earnings rose 0.3% in April. However, downward revisions to previous months lowered the year-on-year increase to 2.5%, the smallest gain since August 2016, from 2.6% in March.
The jobs data did little to alter the view that the Federal Reserve will raise interest rates in June. Markets are pricing in around a 75% chance of a hike at the Fed\'s June meeting, according to Investing.com’s Fed Rate Monitor Tool.

Leave Your Comment

Captcha Image

Top Comments

Subscribe for Newsletter

Gold Crude Research
Austria

+43720881718

Cyprus

+35722008572

France

+33970732199

Hong Kong

+85258087801

Japan

+81345402655

Taiwan

+886277039496

UK

+441744582075

US

+16466817317