For the first time since early January, the EUR/USD fell below $1.05 on a combination of investors’ concerns. Locally, there is the worry over the upcoming French presidential election, while overseas there is rising sentiment that the Fed will hike interest rates soon. Given the unexpected outcomes of the last two major elections, wherein in the UK voters opted to leave the EU, and in the US, the underdog Trump was elected president, there is concern that the anti-EU candidate might win the French presidency in the May elections. Bets against the Euro have hit a new yearly negative, falling even beyond the numbers reached after the Brexit vote.
As reported at 10:25 am (GMT) in London, the EUR/USD was trading at $1.0507, down 0.22% and just a few pips from the session low of $1.0500. The EUR/GBP was down 0.09% to trade at 0.8438 Pence; the pair traded from a session low to 0.8437 Pence to a peak of 0.8456 Pence.
Yen Broadly Higher on Uncertainty
With political uncertainties growing, the Japanese Yen has been trending higher. The USD/JPY was trading at 113.10 Yen, down 0.49%; the pair earlier hit a session trough at 113.051 while the peak was set at 113.733 Yen. The EUR/JPY was trading at 118.7492 Yen, down 0.84%. Later today, Federal Reserve minutes could help provide the Dollar with a boost if the minutes show a more hawkish stance.