CURRENCIES: Euro Slips From 6-month High As Macron Relief Rally Loses Steam

By Sara Sjolin, MarketWatch Features Dow Jones Newswires

Shared currency jumped above $1.10, but has pulled back

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The euro pulled back in early trade on Monday, as the initial relief rally over centrist reformer Emmanuel Macron winning the French presidential election started to fizzle.

The shared currency traded at $1.0960, down from $1.0999 late Friday in New York. Earlier in the trading session, the euro had jumped above $1.10 to a six-month high (http://www.marketwatch.com/story/investors-are-breathing-a-sigh-of-relief-over-france-for-now-2017-05-07) as it became clear Macron won almost two-thirds of the votes in the second round of the election in France.

Read:Macron handily wins French presidential election (http://www.marketwatch.com/story/macron-handily-wins-french-presidential-electionan-upbeat-outcome-for-wall-street-2017-05-07)

Macron went up against far-right nationalist Marine Le Pen in the runoff round on Sunday, whose promise to lead France out of the eurozone had earned her a reputation as an investors' nightmare.

The euro "pulled away in a classic 'buy the rumor, sell the fact' style given that traders were already positioned for a Macron win," said Hussein Sayed, chief market strategist at FXTM, in a note Monday morning.

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"The next challenge for Macron is going to be the parliamentary elections in June, and given that there's a lack of significant support, it remains highly uncertain whether the President can build a parliamentary majority. However, I don't think this is going to be a major concern to the euro," he added.

See:Investors are breathing a sigh of relief over France, for now (http://www.marketwatch.com/story/investors-are-breathing-a-sigh-of-relief-over-france-for-now-2017-05-07)

European assets had rallied last week as opinion polls continued to point to a Macron win.

In other currency trade on Monday, the ICE Dollar index rose 0.2% to 98.813, with the greenback rising against all other major currencies, but the yen .

The dollar bought Yen112.69, down from Yen112.72 late Friday in New York.

In the U.K., the pound was flat around $1.2984.

(END) Dow Jones Newswires

May 08, 2017 04:23 ET (08:23 GMT)