The euro edged higher against some if its major rivals amid the risk-positive market sentiment and news that France’s left-wing forces failed to unite and present a joint candidate in the presidential race. Still, the currency was not particularly strong as negative factors, which were dragging it down previously, did not go away.
Market participants were concerned that a leftist unity candidate would result in either a socialists president, who would increase a budget deficit by boosting public spending, or in rising support for the far-right anti-euro candidate Marine Le Pen. Therefore, the absence of unity in left parties was welcomed by markets. Yet the danger for the euro from the French elections remains as Le Pen is gaining support, according to polls, though she is still far from winning.
There is also the question of the Greek bailout and the accompanying concerns about the eurozone stability. Apparently, the lenders themselves have disagreement on terms of the aid, and that complicates the matter further.
EUR/USD ticked up from 1.0607 to 1.0622 as of 16:36 GMT today. EUR/JPY rose from 119.72 to 120.10. On the other hand, EUR/GBP went down from 0.8549 to 0.8521.
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