Euro continues to slide overnight

The euro retreated on Tuesday from its five-month high as investors largely priced in the victory of Emmanuel Macron in France’s presidential election.

Euro was weaker by 0.15 per cent or 16 points as of 2.45pm Tuesday, the second day of losses after hitting this year’s high of 1.1038 against the US dollar Sunday night, after receiving a boost from Macron’s win.

“Currency traders bought euro when they were expecting Macron to win the presidential election but started to sell euro when it came true,”

“It is a rule that investors buy in with expectations but sell out with facts.”

“The market-positive French election outcome should be a boost to both euro and risk appetite, but short term market noise and positions such as crowded euro trade are dictating near-term price action,” said Stephen Innes, senior trader at Oanda. “There was a lack of new catalysts to buy euro once the election narrative had played out. Dealers are now in a state of flux awaiting some central bank direction, whether it be Fed or European Central Bank.”

South China Morning Post

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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