Foreign Exchange Market: Euro Strived to Hold Gains
On Monday, the euro grapple to its gains. At the same time, a reduced relief in investors for an offset Eurosceptic parties in European parliamentary elections. The biggest group fall off some of their share of seats in the election.
Aside from that, Center-right and center-left blocs declined in their shared majority. However, parties devoted to enhancing the union held on to two-thirds on seats, causing a surge for the Greens and liberals.
Furthermore, in the foreign exchange market, the currency first boosted $1.1215. It got off in its two-year lows of $1.1105. But after that, it dropped 0.1% at $1.1197 in subdued trading, as London and New York had market holidays.
FX analyst at Danske Bank, Christin Tuxen stated, “The populists didn’t gain more than they did.”
The euro last rose 0.3% at 1.1256 francs, holding its gains against the Swiss franc.
Moreover, the election this year created a series of meaningful political events in Europe. Typically, elections don’t have much attention to global markets. On the other hand, the slowing economic momentum proved that monetary policy is more important.
Other Part of Foreign Exchange Market
Meanwhile, the dollar index was last up 0.1% to 97.705.
Also, against the Japanese yen, the U.S. currency rose 0.1% to 109.45 yen. The rise was due to bargain-hunting Japanese investors.
Even though the dollar got some gains on Monday, it is still not far from its three-month low of 109.02 yen touched two weeks ago. And at the same time, the tension between Washington and Beijing over trade and technology continues to arise.
Other than that, the pound declined $1.2673, falling back from its early gains. Last Friday, the British currency rebounded after Prime Minister Theresa May announced the date of her departure. Also, sterling stands near its 4-1/2-month lows.
Then, China’s onshore and offshore yuan established a 1-1/2 high. The surge was due to the senior official’s advice to not bet against the currency.
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