Euro trades near multi-month highs; dollar slides

Investing.com – The euro eased from a 5-1/2 month high against the dollar on Monday, but remained close to session highs, as investors poured into the single currency, after the outcome of the first round of the French presidential election matched expectations.

Centrist candidate Emmanuel Macron garnered 23.8% of the vote while far-right candidate Marine Le Pen garnered 21.7%.

EUR/USD rose by 1.08% to $1.0844, as investors assumed Emmanuel Macron will beat anti-EU Marine Le Pen in the race for the French presidency, after polls indicated a victory for Mr Macron in the run-off vote, scheduled for May 7.

Elsewhere, sterling tumbled against the euro, as EUR/GBP rose by 1.37% to 0.8485, after hitting a session high of 0.8509.

In the absence of top-tier U.S. economic data, the dollar index struggled to recoup losses sustained against the euro despite rising geopolitical tensions.

North Korea said on Sunday, it was ready to sink a U.S. aircraft carrier, as two Japanese navy ships joined a U.S. carrier group in the western Pacific.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.61% to 99.05 by 13:08 EDT.

The French election result dampened demand for safe-haven assets, which includes yen. USD/JPY traded at 109.78, up 0.62%.

Meanwhile, sterling fell against the dollar with GBP/USD down 0.37% to $1.2780.

The slow start to the trading week for sterling, came on the back of a 2% rally last week, after British Prime Minister Theresa May called for a UK general election in June.

Elsewhere, USD/CAD rose by 0.07% to $1.3514.