Euro rose in European trade on Friday against a basket of major rivals, extending gains for the seventh straight session against the US dollar and hitting three-week highs, about to register its largest weekly profit in 2024.
The far right “National Front” French party got less votes than expected in the first round of French elections, in turn boosting the euro.
Now investors await the second and final round of the Parliamentary elections in the weekend, with the far right widely expected to fall short of an outright majority.
The Price
The EUR/USD pair rose 0.2% today to $1.0830, the highest since June 12.
The pair rose 0.25% on Thursday, the sixth profit in a row, as the odds of two Fed rate cuts this year improved, undermining the greenback.
Weekly Trades
The EUR/USD pair is up 1.1% so far, on track for the largest weekly profit in 2024.
French Elections
Latest opinion polls indicated the National Front will get between 190 and 220 seats in the French Parliament, followed by a leftist populist coalition, which is expected to gather over 160 seats, followed by Emanuel Macron's Together coalition with estimated 120 seats.
Nearly 36% of respondents wanted the far right to win, while 26% supported the leftist coalition, with only 19% supporting Macron’s party.
The polls, in addition to the recent European Parliament elections, clearly indicate the strengthening position of the far right movement in France.
The Dollar
The dollar index fell 0.2% on Friday, sharpening losses for the seventh straight session and plumbing three-week lows at 104.95 against a basket of major rivals.
Earlier US data showed the economy has likely slowed down more than expected in the second quarter, in turn boosting the odds of two Federal Reserve interest rate cuts this year.
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