EUR/USD guided by the political uncertainty - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the EUR/USD has barely moved overnight with the Republican party coming out in support of their candidate, Francois Fillon, yesterday evening’s rolling IFOP poll saw E macron up to 25.5%, just behind M Le Pen on 26.5 while the gap to F Fillon grew as he slipped to 19%.

Key Quotes

“The perception of a two-horse race doesn’t remove the uncertainty but leaves EUR/USD tracking relative yields, which in practise means going nowhere much. Weak German factory orders data this morning have barely had an impact and the next major event is the ECB meeting Thursday, but even then, a dovish bias is universally expected. We put out a long EUR/GBP recommendation on Friday, and that seems a good way to trade a meandering market for now.”