EUR Recovers as Macron Rises in French Polls

The dollar continued to climb against the yen Thursday afternoon after Treasury Secretary Steven Mnuchin affirmed that there’s bipartisan support for raising the U.S. debt ceiling, and that an extension would likely be approved by the summer.

The greenback USDJPY, +0.39%  advanced to ¥109.48 on his comments, compared with ¥108.86 late Wednesday in New York.

Investors have grown increasingly anxious since the U.S. reached the limits of its legal authority to borrow back in March, worrying that the same fractiousness that prevented President Donald Trump from passing his plan to repeal and replace Obamacare might also stymie a debt-ceiling accord, said Alfonso Esparza, senior currency analyst at Oanda.

“With a Republican president majority, it had seemed like a slam dunk,” Esparza said. “Yet after the health-care reform fiasco, some questions began to emerge.”

The dollar’s advance moved the euro off a three-week high it had reached earlier in the session after the latest polling indicated that French centrist presidential candidate Emmanuel Macron remains the front running the France’s tight presidential race. The first round of voting will take place on Sunday.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza