We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @ReformedBroker: “The digital yuan China is planning is in fact a complete inversion of the bitcoin model. All of the data created would…
  • The $CAD rose on a hopeful tone from the Bank of Canada, but the largest risk to the central bank’s outlook remains unresolved. NZD/CAD has rallied. Will AUD/CAD follow as CAD/JPY sinks? Get your market update from @ddubrovskyFX here: https://t.co/AairskIHA5 https://t.co/f53ZzloW4u
  • The latest UK General Election opinion polls continue to show the Conservative Party holding a strong lead over Labour and point to Boris Johnson winning a working majority in Parliament. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/qF04EOUWkI https://t.co/LNl4bXbnpp
  • Recent polls have put Conservatives ahead of Labour and given a boost to $GBP. Get your #Brexit update from @ZabelinDimitri here: https://t.co/l2n53C0cYY https://t.co/oTWfXkaDDt
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/xeromAGqqx
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/rCOG78QQ2M
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your market update from @IlyaSpivak here: https://t.co/4lHhHsby56 $XAUUSD https://t.co/JmZxckVHdS
  • Cable (GBP/USD) remains just off its seven-month high print around 1.3165 as traders start to move to the side lines ahead of next Thursday’s General Election vote. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/CpCh13J9ZH #Brexit https://t.co/PIh6WUqbsK
  • (Weekly Technical Outlook) GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD Outlook as UK Election Looms $GBPUSD $EURGBP $GBPJPY #UKelection2019 - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/GBPUSD-EURGBP-GBPJPY-GBPCAD-Outlook-as-UK-Election-Looms.html?CHID=9&QPID=917702 https://t.co/iuILHYczJ7
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
French Elections Give Euro Life; DXY at Major Trendline Support

French Elections Give Euro Life; DXY at Major Trendline Support

2017-04-24 11:30:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Talking Points:

- French elections come out just as the polls predicted, with Emmanuel Macron and Marine Le Pen advancing to round two on May 7. - DXY Index back to major trendline support as prospect of US government shutdown nears this Friday, April 28.

- See how the French elections fit in with the DailyFX Q2'17 forecasts.

Upcoming Webinars for Week of April 23 to April 28, 2017

Today at 7:30 EDT/11:30 GMT: FX Week Ahead: Strategy for Major Event Risk

Tuesday at 6:00 EDT/10:00 GMT: DailyFX European Desk Round Table

Wednesday at 6:00 EDT/10:00 GMT: Weekly Trading Q&A

Thursday at 6:00 EDT/10:00 GMT: Central Bank Weekly

Thursday at 7:30 EDT/11:30 GMT: Live Event Coverage: ECB Rate Decision

Friday at 8:15 EDT/12:15 GMT: Live Event Coverage: US GDP (Q1)

See the full DailyFX Webinar Schedule for other upcoming strategy sessions.

Higher yielding currencies and risk-correlated assets are running higher this morning thanks in no small part to the results of the first round of the French presidential elections. With Emmanuel Macron, the candidate most likely to beat Marine Le Pen in a runoff election advancing into the second round, the Euro is breathing a heavy sigh of relief that a French existential crisis will never materialize.

With implied volatility having run significantly higher in EUR-crosses ahead of the French elections, there's little room left to wonder why the Euro has traded so sharply higher at the start of the week. EUR/USD itself is paring its gains, however, as the DXY Index has come into longstanding support, the trendline going back to the May, June, and August 2016 lows.

While there may be a bit more juice to squeeze out of the French elections as a catalyst for Euro strength when the second round of voting takes place on May 7, the immediate focus in the days ahead is on the potential US government shutdown. If the US government does not get a budget in place by this Friday, April 28, the lights go out - plain and simple. The timing of such an event would be a significant negative catalyst for the US Dollar, which can't really afford one at the moment as it nears a major technical breakdown.

See the above video for a further discussion of the US Dollar's prospects this week as well as a technical review of the DXY Index, EUR/USD, AUD/USD, GBP/USD, USD/JPY, EUR/AUD, GBP/AUD, and Gold.

Read more: Get Ready for Gap Open in EUR-Crosses Thanks to French Election

--- Written by Christopher Vecchio, Senior Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher's e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.