c-mach-RTX11V2H-Leonhard Foeger

The euro reached new heights after the French election, but it has been falling ever since

$1.10

The euro reached $1.10 after the French election, the highest level in six months.

Published   |  Photo by Reuters/Leonhard Foeger
c-mach-RTX11V2H-Leonhard Foeger
$1.10

Exchange rate of the US dollar versus the euro

c-mach-RTX11V2H-Leonhard Foeger
$1.10

Traders were relieved with Emmanuel Macron’s victory in the French presidential election.

Besides being pro-EU, the centrist politician wants to cut corporate taxes and public spending, and wants to invest €50 billion ($55 billion) in the French economy.

c-mach-RTX11V2H-Leonhard Foeger
$1.10

But right after reaching $1.10, the euro went down again to $1.09. That’s because Macron’s win was not really a surprise and traders had been betting on it for a while.

The jump was bigger right after the French election’s first round, when the euro went from $1.07 to over $1.09.

c-mach-RTX11V2H-Leonhard Foeger
$1.10

The euro’s weak gain might also be due to the many challenges facing Macron.

He has to win over Le Pen’s voters, those who voted in him just to stop his opponent, and those who abstained. He also has to promote unpopular policies, including his labor reform, which is already drawing protests.

Published

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