Euro Backs Off After Opening Sharply Higher

The euro has backed off from its daily highs by now but only after opening sharply higher following the landslide victory of centrist Emmanuel Macron in the second round of the French Presidential election.

Markets-favored Macron won with about two thirds of the votes, the result that was in line with opinion polls ahead of the voting. Yet many people were feeling that polls should not be trusted after they failed to predict the Brexit and the victory of Donald Trump in the US Presidential election. With that said, the outcome was largely priced in by markets, therefore it will be hard for the euro to hold onto gains without support of some additional bullish news.

EUR/USD traded at about 1.0989 as of 6:57 GMT closing at 1.0986 on Friday and opening at 1.1018 today — the highest level since November 9. EUR/GBP traded near 0.8466 after closing at 0.8465 during the previous trading session and opening at 0.8486 on Monday.

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