Euro Rises Despite French Election As Dollar Retreats

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Euro rose on Monday despite French President Emmanuel Macron losing an absolute majority in the country’s parliamentary election. As the dollar retreated against its major peers after hitting a 20-year peak last week. Macron’s centrist Ensemble coalition secured the most seats in the National Assembly. But fell well short of an absolute majority needed to control parliament, final results showed.
Analysts and traders shrugged off the election results, with the euro rising 0.2% against the dollar to $1.05155.

Ingvild Borgen Gjerde, the FX analyst at DNB Markets, says “Even though a Macron presidency and majority in Parliament would be very positive. Especially for Eurozone cooperation and so forth, it’s more for the long term, it’s not something that affects markets here and now,”

Currently, the European Central Bank promised to devise a new anti-fragmentation tool. Which should provide fresh support for the bloc’s indebted southern rim.
The dollar edged 0.2% lower to 134.715 yen, after hitting 135.44 yen in Asia-Pacific trading hours. c

The dollar index , which measures the greenback against a basket of six currencies including the euro and yen, fell 0.25% to 104.44 but remained close to a two-decade high of 105.79 hit on Wednesday last week, the day the Federal Reserve raised interest rates by 75 basis points to tame high inflation.

Dollar loses 0.4% to 0.96525 Swiss francs, while sterling ticked up 0.1% to $1.2232. The Australian dollar jumped 0.6% to $0.6980.Leading cryptocurrency bitcoin remained weaker, however, falling 2% to $20,154. Therefore, sliding back toward the weekend’s low of $17,592.78, a level not seen since late 2020.

-Reuters.

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