Euro And Dollar Stalls While Yen Dominates The Market
By Anatol Thomas
The French presidential election has a major impact on the value of the Euro. The first round is about to start and the investors are worried. The European markets will be back with full force after the Easter holiday on Monday. The top four candidates have a 20% support mark close to each other. Experts are unable to predict who would go on to the next round after the initial election poll on 23rd April.
The market will be badly affected by both far left and far right candidates. Jean Luc Melechon and Marine Le Pen have similar popularity and the situation is unpredictable. The election of either of the candidates would result in destabilization across the EU.
Traders are currently spooked by the French political situation and Euro is affected badly. The risk appetite is expected to reduce drastically when the second largest world economy is influenced by French elections. The US dollar has also faced a decline in recent days.
The one currency that gained in this situation is the Japanese Yen. The traders and investors view it as a safe haven currency. Even the New Zealand and Australian dollars are susceptible to the global pressure. When the political tension in the EU bloc increases, value of the US dollar is expected to strengthen.
In the Asian market, the Australian stock market faced a decline following the Wall Street. The interest in fed rate hikes has subsided and it was evident in the trading scenario.
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