The Euro edged higher and moved away from the recently struck 11-month trough versus the US Dollar as political uncertainty within the Eurozone seems to be evaporating slightly; that has provided some support to the common currency. In France, Nicholas Sarkozy, the former president of France who was deeply disliked, was ousted over the weekend from France’s presidential election primaries. That left Alain Juppe and Francois Fillon to fight for the Republican party nomination. The winner will go head to head with the anti-E.U. challenger of the “far-right,” Marine Le Pen, who is seen as less likely to win now that Sarkozy is out of the picture. Had Ms. Le Pen won France’s presidential elections, investors would have worried about a Eurozone break up.
As reported at 10:35 am (GMT) in London, the EUR/USD was trading at $1.0623, up 0.37%; the pair ranged from a session low of $1.058 to a peak of $1.065. The EUR/GBP was also higher at 0.8613 Pence, a gain of 0.42%; the pair had earlier hit a high of 0.8638 Pence while the session low stands at 0.8567 Pence.
Dollar Rally Stalls
The US Dollar was generally broadly weaker as the rally since the US presidential election is waning. Since election day, the Dollar has appreciated more than 3% as investors anticipate more fiscal spending and ultimately, higher interest rates. Markets are still betting on a December rate hike from the Federal Reserve Bank. The USD/JPY pair trading at 110.764 Yen, down 0.10% while the AUD/USD was trading higher at $0.7353, a gain of 0.10%.