020 7898 0500The euro (EUR) strengthened against the dollar (USD) throughout the day as the outlook for the upcoming French Presidential Elections appears more stable. In Monday night’s first live French Presidential debate, centrist candidate Emmanuel Macron cemented his position as front-runner with far-right leader Le Pen reportedly coming in third. As a result the EUR/USD rate pushed to its highest level in six weeks. It is likely that the euro will continue to be driven by political headlines. The result of Monday’s debate will be a relief for many, because a strong performance by anti-European Union (EU) candidate Le Pen would have increase fears for the future of the bloc.
Meanwhile, despite the six week high in EUR/USD levels, we saw the euro weaken against the pound (as inflation in the UK rose to 2.3% from 1.8% last month, exceeding analysts’ expectations of a 2.1% level.
Today the region’s current account is set for release, this data set is secondary and activity is likely to continue to focus on French politics.
