Euro tumbles fears over Le Pen grow, FX Focus


The euro rose the worst performer among the G10 currencies on Tuesday (February 21), amid mounting fears that Marine Le Pen could win in the next general election in France.The single currency fell 0.68% against the dollar to trade at 1.0542 $, after giving an opinion poll National Front leader, 27% of the support, and put her in front of its competitors before the first round of the French presidential elections on April 23.

Opinion polls also trailing her show in the second round round May run-off, although it has in recent weeks by half in the footsteps of her main challenger, independent Emmanuel MACRON.Le Pen has dealt the possibility of winning the election a severe blow to the euro, it gave a strong speech opposition to the EU.

“It is well known from Marine Le Pen is not a fan of the euro,” said Kathleen Brooks, research director at City Index.

“But it’s worth remembering this, it is likely to keep the pressure on French bond yields rise in support for Le Pen, and can these political risks further weigh on the euro. If [the euro] falls through 1.0500 $, then the euro / dollar could find the same test in 2017 its lowest level so far at $ 1.0341. ”

The euro was also up against the pound on the back foot, with the latter by 0.39% against the single currency to € 1.1781. Sterling, however, fell by 0.36% against the dollar to $ 1.2415, and do not benefit from a positive report from the Office for National Statistics, which showed a surplus in Britain reached its highest level in January for 17 years.

It saw strong tax revenues the government to achieve a surplus of £ 9.4bn in the last month, the highest number ever since 2000.

“- In addition to evidence that the economy has held well after the vote to leave the EU looking through some of the monthly fluctuations, the growth of receipts rate stood fixed to a large extent since June,” said Scott Bowman, an economist in the United Kingdom in the Capital Economics.

Elsewhere, the dollar rose against major currencies, after the official Federal Reserve indicated the US central bank is committed to raising interest rates sooner rather than later the prices.

The head of the Federal Reserve Bank of Philadelphia, Patrick Harker market news, the bank said could push ahead with a rate hike next month, if it saw signs that inflation is gaining momentum.

The dollar rose against the backdrop of Harker’s remarks, winning by 0.46% and 0.26% against the yen and the Canadian dollar, trading at ¥ 113.62, Canadian dollar and $ 1.3140 respectively, and rose 0.75% against the Swiss franc to CHF1.0103.