Euro Rises a Second Week as Bets Before France Vote Go Two Ways
- Investors keep higher exposure through options, less in spot
- Pound shrugs off weak retail sales data to steady near $1.28
French Election May Spur Selloff in the Euro
The euro headed for its second week of gains versus the dollar and its biggest in three months as investors added upside exposure before the first round of French presidential elections on Sunday.
The common currency has advanced almost one percent this week as investors unwound shorts, while some outright upside betting went through options, according to traders across Europe. Price action Friday was driven by last-minute adjustments, with short-term accounts closing their cash positions. The euro rose after London open, but failed to test offers near $1.0750 and remained within a tight range. Thursday’s shooting in Paris, although it forced an early end to campaigning for the leading candidates, had little effect on the currency market, other than weighing on already thin liquidity in options.