The European currency touches its three-week high as its beats the U.S. dollar in Thursday’s close. Most of the traders are closing large bets against the U.S. currency before Sunday’s first round of presidential election in France.
The euro was higher by 0.39 percent versus the dollar’s $1.0751 as it hits $1.0777 on the previous trade.
The U.S. greenback is still sluggish against its major opposing currencies following the new figures on business activity in the mid-Atlantic, and domestic unemployment claims did not change the views of traders on low inflation and the moderate fiscal growth in the United States.
According to some analysts, traders are waiting for the go signal from polls showing French centrist Emmanuel Macron defeating far-right candidate Marine Le Pen without any difficulties for the second round next week. London’s Think Markets chief market analyst Naeem Aslam says the market is investing on Macron’s power to “drive the country out of its misery”.
Meanwhile the dollar index has deteriorated for the past two weeks by 0.08 percent at 99.82 after it showed a surprisingly weaker economic figure of 99.374. It doubts the abilities of U.S. President Trump’s administration to enact fiscal and tax legislation. Mizuho Corporate Bank’s currency strategist Sireen Harajli says the markets are forecasting a much stagnant policymaking this 2017.
In other currencies, Canadian dollar remained stable after dropping last Wednesday. The New Zealand and the Australian dollar both recouped against the euro.
The general election order from British Prime Minister Theresa May this week also made the currency under pressure by the sterling which is rising again.