Eur Lower As Markets Move on From the French Election

Well, a week’s a long time in politics and a day’s a long time in Foreign Exchange, the relief rally from Macron’s election victory was very short lived and the Euro has dropped back down a big figure on the day. As we said yesterday the FX market is notoriously fickle and it’s attention moves on very quickly to the next theme and it trades accordingly.

Yesterday with the event risk of the French election is out of the way, we saw a return to the focus on the worlds biggest economy and the dollar’s next move. With a June rate hike now 90% priced in and hopes high for tax reforms the Usd came back better bid against the majors with the Dxy trading up to 99.20 from 98.5, the UsdJpy punching through 113.00 and Cable topping out again just under 1.3000.

Looking at today’s calendar and once again it’s fairly steady on the fundamental data release front. In the Asian session we have a bit of an Australian focus with the Retail Sales data due out at 11.30 am and the Budget announcement tonight. The Aussie has been under pressure for the last few days as commodities continue to fall so bulls will be hoping for some good news out of the Retail Sales for a bit of a relief rally.

Into the London and New York sessions and it’s all second and third tier data being released with the highlight probably being JOLTS job openings in the US and the Building Permits data out of Canada.

So with this in mind, I think traders will be looking for a continuation of the stronger dollar move today and looking for levels to get long against the major currencies.

Good Luck today and if you have any questions or queries, please contact the team at info@sec.rakuten.com.au

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