EUR/USD upbeat following French elections – Danske Bank

Senior Analyst at Danske Bank Morten Helt noted the recent performance of the single currency in the wake of Sunday’s elections in France.

Key Quotes

“The euro soared, with EUR/JPY as the biggest winner, following the results of the first French presidential election”.

“EUR/USD initially jumped nearly 2½ figures, but some of the gains have been erased during the early hours of the Asian session”.

“As a Macron win now seems highly likely, Le Pen will need to see a significant surge in the polls to shake the single currency during the runoff over the next few weeks. Hence, we expect EUR/USD to be little changed on this result and will likely continue to hover around current levels during the second-round campaign in the absence of new central-bank messages”.

“ECB will be side lined for now, but should the FOMC take the ‘quantitative tightening’ discussion further near term, EUR/USD could be vulnerable”.