📉 Results of EU elections weigh on the common currency
Euro is the worst performing G10 currency today, with EURUSD dropping to the lowest level in a month. The main currency pair is down 0.3% today, dropping from around 1.0800 to around 1.0740. The outcome of the European Parliament elections and, more precisely, its consequences can be blamed for the poor performance of the common currency. While the results, including strong showing of far-right parties in France and Germany, were expected based on pre-election opinion polls, they have triggered somewhat unexpected actions.
French president Macron dissolved parliament and called snap elections for late-June/early-July after his party secure just around 15% of the votes, while far-right National Rally won an over-30% backing. Prospect of new parliamentary elections in one of the largest European economies triggered a renewed spike in political uncertainty on the Old Continent, and it is weighting on the EUR and European indices today. French CAC40 is taking the biggest hit among European blue chips indices, dropping around 2% today. However, declines can be seen all across the Old Continent with German DAX and Spanish IBEX dropping 0.6%, Italian FTSE MIB moving 0.8% lower and Dutch AEX trading 0.3% down at press time.
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EURUSD drops to the lowest level in over amonth and test 1.0730 support zone. Source: xStation5
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