Share

Euro weakens as markets look past Macron victory

Sydney - The euro dropped from a six-month high against the dollar as relief over Emmanuel Macron’s victory in the French presidential election was replaced by concern the European Central Bank (ECB) will maintain currency-weakening stimulus.

The shared currency fell versus most of its major peers as Macron’s expected victory over Marine Le Pen spurred investors to take profits. ECB Executive Board member Peter Praet said last week the region’s recent economic improvement isn’t yet sufficient reason to tighten policy. ECB President Mario Draghi will speak to the Dutch parliament on Wednesday.

“The euro is a sell on rallies above 1.10 against the dollar as the ECB’s senior leadership under Draghi and Praet remain cautious about the outlook for eurozone inflation, while US payrolls suggests the Fed will continue to hike rates,” says Mansoor Mohi-uddin, a Singapore-based strategist at NatWest Markets, a unit of Royal Bank of Scotland Plc.

The euro is likely to be supported on any dips, according to Peter Dragicevich, a foreign-exchange strategist at Nomura Singapore.

“The mix of an improving eurozone economy, the looming shift by the ECB toward a tapering of its asset purchases and less accommodative monetary policy stance, and the eurozone’s large current account surplus (equal to about 3.4% of GDP) are positives for the currency,” he said.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders