Home | Breaking News | Dollar hunts for direction as European political instability draws focus
French politics are a driver.

Dollar hunts for direction as European political instability draws focus

WT24 Desk

The U.S. dollar traded near break-even levels on Wednesday, retreating from an early advance though investors continued to watch the political situation in Europe with caution, according to MarketWatch.

The coming election in France is seen as a potential headwind for markets, in the wake of far-right candidate Marine Le Pen launching her presidential campaign over the weekend. Polls indicate an uphill climb for Le Pen to be elected, but she has pushed for France to leave the eurozone. When the United Kingdom voted to do so last year, it took the U.K.’s pound to multidecade lows.

“There’s a growing sense of concern on the political backdrop as people attach a higher and higher probability to the prospect of something unusual happening in the elections we have coming up this year,” said Adam Cole, head of G-10 FX strategy at RBC Capital Markets.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

%d bloggers like this: