Euro bows down to profit taking as Emmanuel Macron seals a resounding victory against the far-right leader Marine le Pen in Sunday’s second round of France’s Presidential election. Media reports show that support for Macron was at least 30 percentage points higher than Le Pen’s with results shoing 65.5% and 34.5% respectively.
Macron and Le Pen were the two runner ups after the first round of elections on the 23rd of April. The global interest in the results of this election was due to the fact that France is the second largest EZ economy but also because Le Pen had vowed to take France out of the EU and thus deal a heavy blow to the bloc.
EURUSD spiked briefly to 1.1021 at this week’s open, after another positive 2 days (over Thursday and Friday last week) where the euro rose by over 1%. EURUSD is currently at 1.0971 probably reflecting some profit taking and as another case for buy the rumour and sell the fact materializes.
Meanwhile the US Dollar index (DXY) is staging a small recovery after hitting session lows of 98.50 earlier in today’s session and is currently at 98.76. Gold as well suffered an initial dip early into this week’s start, a move triggered by Macron’s victory. Gold initially dipped to $1220.82 but found support around this level at the 100 DMA; Gold is now at $1231.32.
