Dollar steady ahead of FOMC

The euro saw a relief rally last week, after Emmanuel Macron’s victory against anti-euro nationalist Marine Le Pen in the first round of France’s presidential elections. The runoff vote is on May 7.

Macron and Le Pen will square off in a televised debate on Wednesday, ahead of Sunday’s runoff vote.

Opinion polls still show Macron, a centrist candidate, holding a strong lead of 20 points over Le Pen with just four days to go to the final vote, in what is widely seen as France’s most important election in decades.

The euro will probably head higher, especially against the yen, if Macron win’s Sunday’s vote, said Stephen Innes, senior trader for FX broker OANDA in Singapore.

“Guys just want to see the final outcome and I think they are going to go into euro and I think primarily euro/yen… that’s going to be their favorite trade,” Innes said.

Under that scenario, the dollar is likely to be supported against the yen as risk sentiment improves, Innes said.

 

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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