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.”
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.