Forex today was stuck in a range with prices back to an equilibrium, or at least with the French election first round risk priced back out of the picture.
The French elections gave us the outcome that markets prefer, the status quo. Macron is a clear favourite to win with the entire globalisation crew backing him now in the second round on May 7th vs Le Pen. The risk-on tone is underpinning weakness in the safer havens such as the Yen( 0.58% at 109.72), the swissy and gold. The euro is taking the top spot (just shy of the 1.09 handle) which is also supporting sterling to a degree having made highs of 1.2849. EUR/GBP remains below the 0.85 handle and the highs from the French election relief opening gap at 0.8502/08.
US yields are somewhat subdued below 2.3% psychological level, albeit higher by at 1.1% 2.27% wile the DXY traded within a range of 98.835 - 99.326 and -0.91% on the day. The feel is very much consolidation as investors await for scheduled events to take back the focus from the French elections with a number of key events taking place this week from around the world, political and economic.
The day ahead
There are no scheduled events for the day ahead in Asia.
Key events from US session
- US Dollar fails to extend correction above 99 handle
- AUD/USD stuck in a tight range sub 0.76, where now?
- Le Pen steps down from National Front leadership - Fox News
- Elabe Poll: Macron 64% vs. Le Pen 36%
- U.S. President Trump said to be looking to cut corporate tax rate to 15% - WSJ
- U.S. Secretary of State Tillerson will preside a special ministerial meeting on Friday to discuss North Korea
- Gold remains near daily lows on higher risk appetite
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