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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes