Euro Falls After Profit Taking Following Macron’s Victory

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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