EURUSD gapped higher to 1.0918 at this week’s session open after closing 1.0724 last Friday. The fresh highs in fact mark 5-month highs for the currency pair. Gains for the euro were relatively short lived however as the currency pair is now back to 1.0843 at the time of writing.
The euro has staged such relief rally and garnered support on news, over the weekend, of the outcome of the first round on the French presidential election. Leading the polls was Emmanuel Macron, a former economy minsiter and most importantly for the euro a Pro-EU candidate. Mr Macron has now qualified for the May 7th round of votes together with the next runner up Marine Le Pen.
The next major highlight for the euro this week will be the ECB’s policy meeting and communication next Thursday.
In the meantime the USD gapped lower initially this morning, but has since then managed to recover a lot of the losses made since last Friday.
Geopolitical tensions continued brewing as during the weekend it has been reported that the North Korean Governement has arrested an American Citizen – we now await further developments.
No major high impact data expected in today’s calendar of event but the highlights of today’s economic docket are mostly the German IFO indicator and the Chicago Fed Manufacturing Activity Index.
