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The euro is enjoying its best daily climb against the dollar since last June as markets breathe a heavy sigh of relief in the wake of France’s first round presidential election which came in as pollsters predicted.
The single currency is up 1.37 per cent against the dollar to its strongest level since last November this morning at $1.0872 – according to data from Bloomberg – marking its best daily climb since June 3, before the Brexit vote last year.
Investors have been bouyed by results of yesterday’s vote in the eurozone’s second largest economy where centrist candidate Emmanuel Macron gained the largest vote share at around 25 per cent.
Mr Macron, a former investment banker at Rothschild and economy minister under the last French government, will contest the final run off against far-right candidate Marine Le Pen.
With pollsters already having scored a victory with their initial round projections, they now suggest Mr Macron will comfortably triumph by a margin of over 60 per cent.
“We are now back to where we were three weeks ago, when everyone expected the second round to be Macron v Le Pen and almost everyone expects the outcome of that to be victory for Macron, given polls put him 20 percentage points ahead” said Elsa Lignos, global head of FX at RBC Capital Markets.
Chart via Bloomberg