After the strong impact from the French presidential elections, market have been relatively steady in Monday’s session. All the major currencies, euro, U.S. dollar and sterling traded mixed against the G10 basket. The CAC 40 index was the big surprise yesterday as it jumped to a fresh high since 2008.
Euro and U.S. Dollar Awaits The Two Important Events of The Week
The euro traded sharply higher after the first results of the French Presidential elections and Emmanuel Macron “won” the first round. France would be set on two different scenarios depending on who wins the elections. Macron is pro-E.U. whereas Le Pen will create a referendum on E.U. membership shortly after her victory.
Since yesterday’s session, the euro and the U.S. dollar traded mixed versus the G10 basket while significant rise had the currencies versus sterling, Canadian dollar, and New Zealand dollar. The week started with the release of German IFO survey on Monday morning. Business expectations in April showed a small decrease to 105.2 from 105.7 while business climate surpassed market’s forecast of 112.5 and rose to 112.9 from 112.4 before. Also, the IFO current assessment edged higher to 121.1 from 119.5. German Buba monthly report published, while FOMC member Neel Kashkari had two scheduled speeches.
In addition, there are two important events for the single currency and the greenback this week – the first is on Thursday, European Central Bank monetary policy and the second that will have an impact on the world’s most traded currency – the EUR/USD pair - is a tax reform announcement by U.S. President Donald Trump on Wednesday. During his campaign Trump said he wanted to cut the corporate tax rate to 15% from 35% and reduce the number of tax brackets, bringing the highest tax rate down to 25% from 39.6%.
Read the full article on JFD Research.