Euro Falls After Profit Taking Following Macron’s Victory

May 8, 2017 Share Print 0

The euro fell from six-month highs against the dollar on Monday, after Emmanuel Macron’s widely expected victory in France’s presidential election, as investors took profit on a roughly three percent gain for the currency since he won the first round two weeks ago.

Macron’s overwhelming win on Sunday briefly pushed the euro above $1.10 versus the greenback, the highest since the U.S. presidential election in November.

“The euro couldn’t sustain the rally as it took to consolidating a 3 percent spike since France’s presidential vote started two weeks earlier,” said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.

“Nevertheless, the euro appears to have emerged from the French vote with a relatively bullish bias as dissipating political risk should intensify the spotlight on the (European Union) bloc’s improving economic prospects.”

Macron’s defeat of nationalist Marine Le Pen has relieved investors who had feared another populist upheaval after Britain’s vote to exit the European Union and Donald Trump’s election as U.S. president. The euro rose as high as $1.1023 , a six-month peak. It also jumped to a one-year high of 124.58 yen .

But by midmorning in New York, the euro fell 0.5 percent to $1.0944 against the dollar, and 0.4 percent versus the yen to 123.45 yen.

via Kitco

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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.