Euro Climbs on French Election Results Amid Busy Monday

By Tomasz Wisniewski|

Published: July 01 2024, 07:54 GMT+0

Euro Climbs on French Election Results Amid Busy Monday

Good morning, traders. As we kick off the week, the market is buzzing with reactions to the French parliamentary election results. Despite the National Rally winning, their margin was narrower than anticipated, boosting the Euro and other European currencies like the Czech koruna and Hungarian forint.

Today’s economic calendar is unusually packed for a Monday. Germany’s Preliminary CPI is expected to come in at 0.2%, while the U.S. will release its ISM Manufacturing PMIs, anticipated at 49.2. These data releases will likely steer market sentiment as the day progresses.

In the indices market, we’re seeing positive momentum. European indices, including the French CAC 40, which is up by 2%, are showing strength. In the commodities sector, oil continues its bullish trend, reaching new mid-term highs, whereas precious metals like silver are correcting, with silver down about 0.5%.

Currencies are reacting strongly today. The Euro opened with a bullish gap against several pairs, while safe-haven currencies such as the Swiss franc, Japanese yen, and American dollar are showing weakness. Notable moves include EUR/USD, which bounced off its long-term support line, and USD/JPY, which is nearing long-term highs, raising the possibility of intervention from the Bank of Japan.

This week promises to be engaging, especially with the upcoming non-farm payrolls on Friday. Stay tuned for more updates and enjoy the trading week ahead!