The euro rebounded from daily lows, trimming losses against some currencies and rallying versus others, as concerns about the outcome of the French presidential elections eased. Macroeconomic data released from the eurozone today was good, adding to the strength of the shared 19-nation currency.
Centrist politician Francois Bayrou announced that he is not going to run for the presidential office and will support independent candidate Emmanuel Macron instead. Analysts said that this reduces chances for far-right candidate Marine Le Pen to win. Her victory would be very negative to the euro considering Le Pen’s anti-European Union stance.
The Ifo Business Climate Index for Germany rose from 109.9 to 111.0 in February (seasonally adjusted) instead of falling to 109.6 as experts had predicted. Eurozone annual inflation was 1.8% in January, unchanged from the preliminary estimate and matching economists’ forecasts.
EUR/USD traded at 1.0539 as of 16:50 GMT today after opening at 1.0535 and falling to the low of 1.0493 intraday. EUR/GBP edged up from 0.8447 to 0.8463 following the drop to the session low of 0.8402. EUR/JPY opened at 119.76, dropped to 118.59 but bounced to 119.66 later.
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