The Euro spiked above 1.0900 barrier in early Monday and posted fresh five-month high, the highest of 2017, after results of the first round of French election showed centrist candidate Emmanuel Macron won on Sunday’s voting.
Macron took around 23.8% of votes, followed by far-right candidate Marine Le Pen, who took 21.5% of votes, as both candidates qualified for the second round.
The Euro surged after the announcement, relieved from fears of victory of anti-EU candidate which would undermine already fragile European Union.
Victory of Emmanuel Macron was the big step towards presidency, as he is widely tipped to win the second round of vote on May 7.
Polls are showing that Macron would win the final vote with more than 20 percentage points against his rival Marine Le Pen.
The Euro was boosted on fresh bullish sentiment that sidelined fears of ‘Frexit’ scenario and gapped higher nearly 200-pips higher against the US dollar on Monday’s opening of the markets.
The pair is expected to consolidate strong gains and keep near-term focus shifted higher, while he gap remains unfilled. Regain of Monday’s high at 1.0916, would easily trigger fresh bullish acceleration towards psychological 110.00 target.
Alternative scenario requires filling the gap to weaken near-term structure and bring the pair back to neutrality zone of previous 1.0700/77 congestion.