Euro Dips on European Elections, Rebounds

The euro dipped to the four-month low today on the outcome of French and Greek elections the past weekend. The currency managed to rally, but remains far below the Friday’s close.
Francois Hollande won the election in France. Such outcome was not unexpected, but it is still negative for the euro. Voters in Greece preferred parties that stand against austerity measures. On top of that, German Chancellor Angela Merkel’s party had a very bad election results in the state of Schleswig-Holstein. Interestingly enough some analysts say that the uncertainty about the situation in Europe may play in favor of the euro as central banks across the world is cutting interest rates because of fears of the European crisis, weakening their currencies.
EUR/USD was up from 1.3009 to 1.3046 as of 14:00 GMT today, while the daily minimum was 1.2954 — the lowest since January. Friday’s close was 1.3083. EUR/JPY climbed from 103.91 to 104.25 and the daily low was 103.22 — the lowest since February.

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