The euro lost a fraction in early trade while the dollar index strengthened on Monday following French President, Emmanuel Macron’s defeat of far-right rival, Marine Le Pen.
The euro opened higher at $1.0840, and was trading at $1.0807, up 0.12% from Friday’s close, but couldn’t maintain the pace. At the time of writing, the euro was trading at $1.0775, down 0.17% from today’s opening, while the dollar solidified its strength.
Notwithstanding, French President Emmanuel Macron’s smooth election victory over far-right competitor, Marine Le Pen, the dollar gained ground against the euro on Monday as investors sought protection amid concerns about global growth prospects.
What you should know
- In the second round of France’s presidential election, Emmanuel Macron easily trounced far-right competitor Marine Le Pen, earning 58.55% of the vote to Le Pen’s 41.45%, according to final interior ministry data released on Monday.
- These results contrast with Macron’s initial triumph in 2017, when he received 66.1% of the vote versus Le Pen’s 33.9%. This is indicative of shifting public opinion.
- Macron admitted in his victory speech that many people voted for him solely to keep Le Pen out, and he promised to address the feeling among many French that their living conditions were deteriorating.
- Markets were concerned that a Le Pen triumph, which polls did not forecast, would result in severe economic change in the euro zone’s second-largest economy.
- Despite Macron’s victory, the dollar still remains a safe haven and strengthens to an all-time high. At the time of writing, the dollar index rose to $101.35 up 0.12%, which places it at a 5year All-time high.
