Emmanuel Macron won the French Presidency by a landslide as expected. It would have been a shock otherwise as opinion polls showed an advantage of 2/3 to 1/3 over Marine Le Pen. This win has helped to assure the future of the euro in the eyes of investors.
At the end of last week investors paid little attention to the US. All eyes were on Trump as per usual. Donald Trump has been in office for over 100 days and to mark the occasion he imposed a 20% tax on softwood imported by Canada but finally confirmed he will not kill the North American Free Trade Agreement. None of these announcements did much for the dollar, nor did the better than expected US employment data.
US nonfarm payrolls went up and unemployment fell – all positive however a federal funds rate hike next month is still impending. Futures prices indicate a 80 % chance of a hike.
Meanwhile in the southern hemisphere the Australian dollar was rattled by a double-digit decline in building permits, but surprisingly not concerned by the slowdown in growth in China’s International trade.This week’s focus is on Australian business confidence, UK house prices and Euroland investor confidence.
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