Traders abandoned the safe assets after the victory of Macron and Le Pen
Exit in the second round of presidential elections in France, Emmanuel Makron and Marine Le Pen to let the market breathe a sigh of relief and return to risky assets after several weeks of apprehension.
EUR / USD - Euro soared after the announcement of the first round of the election results in France
The euro began Monday with a gap
The euro soared on Monday, with the beginning of the Asian session after the first round of the French presidential election ended in predictable result. In the second stage of the presidential race will fight Emmanuel Macron, and Marine Le Pen, who received 24% and 21.4%, respectively.
The dollar index fell
Currency pair EUR / USD rose just 1.33% to 1.0898, while the dollar index fell 0.05% to 99.66 from the first hours of trading. By 9:30 MSK pair retreated to around 1.0850, while the dollar index approached the level of 99.00.
"Bull" euro jump weakened slightly before the opening of the European session, but the general optimism in the market is still dominated, as the impact of the upcoming second round of voting, which will take place on 7 May.
Economic news today:
- IFO business climate index in Germany in April,
- the index of business expectations in Germany in April,
- National Activity Index Chicago Fed in March,
- the speech of the Federal Reserve Bank of Minneapolis Nile Kashkari.
USD / JPY - Dollar began Monday a sharp increase
Dollar "bulls" control the market
The dollar rose sharply after the announcement of results of the first round of the presidential elections in France. Investors in the past few weeks were transferred money into safer assets, fearing victory eurosceptic Jean-Luc Melenhena, whose support rose in anticipation of a vote.
The shift away from safe assets
As a result, traders have started to abandon the safe assets such as gold, the Japanese yen and government bonds. The yield on US Treasury bonds began to rise, making the dollar more attractive as compared to the low-yielding yen.
The pair started trading in Asia, a jump to a mark of 110.28, but by 10:10 MSK fell back to 110.08. It is expected that fresh capital inflow will push US markets and will have on the Japanese currency even more pressure.
What will happen with the market in the future
In the current situation will continue to grow higher-yielding assets on the market, but if the final results of the first round will show a smaller gap between Macron and Le Penn, it can make traders nervous.
In the absence today of any significant news from Japan all the attention will be focused on the publication of macroeconomic data in the US.
GBP / USD - Pound fell below 1.28
Pound did not cope with the dollar
The pair GBP / USD struggled to use the results of the first round vote in France, but in contrast to the dollar and the euro it was not given to achieve the same "bull" pulse. The continuing pressure on the cable does not allow
After rising to the level of 1.2828 with the opening of the Asian session, the pair fell below 1.2800 to the beginning of the European session. However, the British currency continues to remain stable against the background of the upcoming early elections.
Tax reform in the US
In this correction of the pair from a higher level down may blame sharp increase yield US Treasuries. Markets remain optimistic with respect to the plans for tax reform US President Donald Trump, which should tell you about it in detail on Wednesday.
Today the pair GBP / USD will trade on the basis of US News and remain in power dynamics yields on US Treasury bonds.
AUD / USD and NZD / USD - «Aussie" and "New Zealander" started the day rising
Risky assets attracted traders
The increased demand for risky assets has led to an increase in Australian and New Zealand dollars with the opening of the Asian session against the background of the results of the first round of elections in France.
Monday Australian dollar began to jump up to 0.7573, but the opening of the European session, fell back to 0.7553. However, he still found the strength for further growth.
In contrast, New Zealand currency after initial growth to 0.7027, began to take the position with the opening of markets in the Euro zone, falling below the level of 0.7030.
Which affects the growth of US dollar
However, increasing the yield of US Treasury bonds at a time when the Reserve Bank of Australia and the Reserve Bank of New Zealand has maintained a stable monetary policy, could make the US dollar more attractive and prevent attempts to rally "bullish" on the part of the Australian and New Zealand currencies.
USD / RUB - Ruble strengthened against the backdrop of elections in France
The ruble began the week higher
On Monday, April 24, the Central Bank lowered the dollar and the euro against the ruble: 56.23 rubles and 60.31 rubles, respectively.
As of 10:35 MSK on the stock exchange trading, the dollar fell against the ruble to 56.45 rubles to 56.11, while the euro rose from 60.34 to 60.84 rubles.
The ruble is stable
In the near future the ruble will not be enough to be affected by political tensions with the US. Attempts to verbal intervention by the Prime Minister will also have a slight effect on the Russian currency.
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