After EU vote the euro held firm in early Monday trade. Pro-European Union parties withstood more fragmentation than before to hold on to two-thirds of seats in the EU parliament elections.
The common currency traded at $1.1211 in Asian trade, near its highest levels in 1 1/2 weeks. The euro held off a two-year low of $1.11055 touched on Thursday.
Investors had been worried about eurosceptic parties gaining a 30% share of seats. The euro initially rallied above $1.12 but later slipped 0.1% to $1.1196.
While centre-right and centre-left blocs are losing their shared majority, surges in the Greens and liberals meant parties committed to strengthening the union held on to two-thirds of seats. The results dented the hopes of anti-immigration, anti-Brussels National Rally led by Le Pen, Matteo Salvini.
The sterling moved up 0.15% to $1.2731, having regained some ground after Prime Minister Theresa May set out a departure date. The British currency bounced back from a 4-1/2-month low of $1.2605 set on Thursday. But the prospect of a “no deal” Brexit was fast becoming the central battle of the race among contenders to succeed May. Four of eight leadership hopefuls have said Britain must leave the EU on Oct. 31 even if this means a no-deal Brexit.
START TRADINGForex – EU vote held euro firm traded at $1.1211
Trading was seen subdued on Monday due to market holidays in London and New York, limiting moves in other currency pairs.
The dollar traded at 109.45 yen, up 0.15%, underpinned by Japanese players’ bargain-hunting. Buying interest from Japanese investors seems strong when the dollar falls near 109 yen. Still, the U.S. currency is not far from a three-month low of 109.02 touched two weeks ago. The dollar has been also capped against the yen as U.S. President Donald Trump is seen putting pressure on Japan to take measures to reduce its trade surplus with the United States. Trump tweeted on Sunday that much of the trade negotiation with Japan will wait until after the country’s election in July.
Oil rose to about $69 a barrel on Monday, supported by Middle East tensions and OPEC-led supply cuts, though concern over the U.S.-China trade dispute and global economy capped gains. U.S. crude rose 3 cents to $58.66. Brent crude was up 48 cents at $69.17 a barrel by 1143 GMT, having fallen by about 4.5% last week.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money