Forex markets react to Macron’s victory in French election

Unlike the dramatic currency moves that followed the Brexit vote and the US election last year, the victory of Emmanuel Macron in France’s presidential election prompted a little less tumult in foreign exchange markets as the trading week got underway in Asia.

The euro was down 0.1 per cent at $1.0992 on Monday after climbing as much as 0.1 per cent in early trade – but most of the impact from the election’s outcome had already been priced in, as the single currency is up 3.5 per cent against the dollar over the last 30 days.

Investor relief was evident, however, from a slide in Japan’s yen, which weakened 0.2 per cent against the dollar to �¥112.88. It had briefly softened past the ¥113 mark at the open, touching its weakest level since March 17. The Australian dollar was weaker in Asia as well, softening 0.1 per cent to $0.7415.

European currencies outside the eurozone were also down, with the Swiss franc off 0.1 per cent at $0.9899 and the Norwegian krone shedding 0.1 per cent to 8.5023 per dollar.

The pound was likewise down 0.1 per cent against the dollar at $1.2968 and weakened the same amount against the euro to €1.1794.

Among major currencies the Mexican peso was the only major winner against the dollar in morning Asia trading, firming 0.2 per cent to 18.9401 per dollar.

The dollar index measuring the greenback against a basket of peers was basically flat, however, at 98.636.