Currency News: Macron Wins But Investors Still Wary
Currency News
In the aftermath of the French election, relief was restored to investors after Macron’s emphatic victory. After the political unrest of the US presidential election and Britain’s exit from the European Union last year, it was welcome
news when the result concluded as expected. Anticipation for a Macron victory saw the Euro on a rising trend in the days leading up to the election. The market favored having Macron become France’s new president due to his background in investment banking and maintaining France’s membership in the European Union. If Le Pen won, France’s membership into the E.U. would come into question.
After rising to multi-month highs, the euro has already started to give up gains against other major currencies. After rising the strongest level since November 2016 to 1.1022 overnight, the EUR/USD dropped .17% to 1.0979.
Investors remain cognizant of the difficulties that await Macron in implementing his economic program, which includes labor market reforms. With a lack of future positive developments on the horizon for the euro, there is little reason to take any long positions on the currency.
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