Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Euro boosted by French election, dollar near two-year highs

Economy Apr 11, 2022 03:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee/File Photo 2/2

By Karen Brettell

NEW YORK (Reuters) - The dollar held just below two-year highs against a basket of currencies on Monday, still supported by higher U.S. Treasury yields, while the euro rallied after French leader Emmanuel Macron beat far-right challenger Marine Le Pen in the first round of presidential voting.

U.S. Treasury yields have soared on expectations of more aggressive tightening by the Federal Reserve, boosting the greenback. Benchmark 10-year note yields reached 2.793% on Monday, the highest since January 2019.

But the euro looked set to snap a seven-day losing streak against the U.S. currency, rising 0.14% to $1.0889. The U.S. dollar index was last at 99.92, after reaching 100.19 on Friday, the highest since May 2020.

“There was maybe a bit of a relief rally, but it’s going to be hard for the euro to really get more upside traction until the event risk fully passes,” said Erik Nelson, a macro strategist at Wells Fargo (NYSE:WFC) in New York.

Macron will face Le Pen in what promises to be a tightly fought French presidential election runoff on April 24.

The dollar gained further against the yen, which reached its weakest level since mid-2015. The Japanese currency has deteriorated as the Bank of Japan (BOJ) has stayed more dovish than increasingly hawkish peers such as the Fed.

“What we’ve heard from the BOJ so far has been very consistent that they’re not concerned about this move (in the yen) and, if anything, they’re comfortable with the move,” said Nelson. “Given the way rates are moving, the attractiveness of selling the yen and earning a positive rate of interest on that trade, that’s going to continue to be a one-way bet for I think quite a while.”

The dollar gained 0.94% to 125.45 yen.

The next major economic focus in the United States will be consumer price data for March due on Tuesday.

Commodity-linked currencies including the Canadian and Australian dollars and Norwegian krone weakened as oil prices slipped.

The dollar gained 0.39% against the loonie to $1.2621 Canadian dollars, and 1.13% against the Norwegian currency to 8.8105 krone. The Aussie slipped 0.40% to $0.7429.

China's yuan weakened against the dollar on investor concern over capital outflow and currency depreciation pressure after benchmark yield differentials turned negative between the Asian economic powerhouse and the United States.

Yields on China's 10-year government bonds fell below U.S. Treasury yields for the first time in 12 years as investors prepared for more monetary easing on the mainland and a widening divergence between the U.S. and Chinese economies.

The Russian rouble weakened sharply in jittery trade, reversing some of the previous week's gains, after the central bank relaxed temporary capital control measures.

In cryptocurrencies, Bitcoin fell to three-week lows, and was last down 3.78% at $40,541. Ether fell 5.26% to $3,034.

========================================================

Currency bid prices at 3:00PM (1900 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 99.9220 99.8120 +0.12% 4.452% +100.0500 +99.6140

Euro/Dollar $1.0889 $1.0875 +0.14% -4.21% +$1.0955 +$1.0873

Dollar/Yen 125.4500 124.2800 +0.94% +8.98% +125.7700 +123.9700

Euro/Yen 136.61 135.14 +1.09% +4.83% +137.1200 +135.2900

Dollar/Swiss 0.9311 0.9362 -0.53% +2.09% +0.9372 +0.9290

Sterling/Dollar $1.3034 $1.3033 +0.01% -3.62% +$1.3056 +$1.2990

Dollar/Canadian 1.2621 1.2572 +0.39% -0.18% +1.2637 +1.2567

Aussie/Dollar $0.7429 $0.7460 -0.40% +2.21% +$0.7465 +$0.7410

Euro/Swiss 1.0137 1.0158 -0.21% -2.24% +1.0205 +1.0122

Euro/Sterling 0.8353 0.8340 +0.16% -0.56% +0.8389 +0.8343

NZ $0.6821 $0.6848 -0.18% -0.12% +$0.6854 +$0.6815

Dollar/Dollar

Dollar/Norway 8.8105 8.7110 +1.13% +0.00% +8.8210 +8.7280

Euro/Norway 9.5962 9.4624 +1.41% -4.16% +9.6093 +9.4695

Dollar/Sweden 9.4839 9.4416 +0.55% +5.17% +9.4949 +9.4006

Euro/Sweden 10.3280 10.2710 +0.55% +0.92% +10.3320 +10.2727

Euro boosted by French election, dollar near two-year highs
 

Related Articles

Dollar Edges Higher, Lifted by Safe Haven Demand
Dollar Edges Higher, Lifted by Safe Haven Demand By Investing.com - Jul 01, 2022 3

By Peter Nurse Investing.com - The U.S. dollar edged higher in early European trade Friday, trading close to the highs of the year on safe-haven demand as central banks take on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Meru Pet
Meru Pet Apr 11, 2022 10:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
boosted ?
CS Greer
CSGreer Apr 11, 2022 9:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hope Le Pen wins.
William Smith
William Smith Apr 11, 2022 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Macron will lose big if he cant rig the election.
Pilot TwoFive
Pilot TwoFive Apr 11, 2022 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I’m sure the fix is in. Do they have cheat by mail like the US has?
First Last
First Last Apr 11, 2022 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Russia probably has trouble secretly funding Le Pen with sanctions in place.
First Last
First Last Apr 11, 2022 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pilot TwoFive   The vast majority of election frauds in 2020 was committed by retrumplicans.  The the majority of business done by Americans with their gov't is via postal mail or online -- that's why Americans don't spend 1/2 their waking hours in queues.
Yup Tub
Yup Tub Apr 11, 2022 12:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The marxist Melenchon (20% votes) has asked its supporters to vote for Macron in the second round of presidential elections.
John Laurens
John Laurens Apr 10, 2022 11:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
leave it to the french to ******the bed at every opportunity.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email