Euro exchange rates remain under pressure amid concerns that Marine Le Pen stands strong in the polls for the French elections this year. The far-right political candidate is expected to breeze through the first round of the French elections, and according to the latest polls, will lose in favour of Emmanuel Macron in the second round.
Since the shock results in the UK and US markets remain apprehensive to polling figures and as such, remain cautious to the potential implications of a Le Pen victory. With nationalism on the rise predicting the outcome of this year’s elections has become far more difficult to call.
It’s not just France that markets remain on edge about, the far-right Geert Wilders of Holland has similar plans to take the Dutch out of the Euro, presenting further chinks in the Eurozone armour.
Further polls surrounding the elections in France and Holland may add further volatility for Euro exchange rates, alongside a string of economic releases tomorrow and Thursday.
Busy week for Eurozone economic data
There are big economic releases from the EU powerhouse Germany alongside inflationary data for the whole Eurozone. Unemployment rates have remained steady in Germany with much of the focus on the Manufacturing PMI in the wake of the Brexit vote.
As the power house of Europe, German economic data has s significant impact on Eurozone releases. Unemployment rates and inflationary figures released on Thursday could set the tone for further monetary action from the ECB.
Further movements for Euro rates could also present themselves on Friday with Markit PMI and retail sales.
The Euro could make headway against the Pound but looks set for further losses against the US Dollar. The prospect of further interest rate hikes continues to boost appetite for the US Dollar, and with EUR/USD the most traded currency pair, investors will look to move funds out of the risky Euro in the safer hands of the US Dollar.