Euro up on fear of missing out a post-election rally [Video]
|The UK’s Labour Party is set to win a highly anticipated landslide victory in the general election. Cable is upbeat near 1.2770 and the FTSE futures are pointing at a positive start to the session.
In France, the situation looks better from a market perspective, as well. The latest polls suggest that Marine Le Pen’s National Rally could fall ‘well short’ of a majority at this weekend’s second and final tour of legislative elections. Investors are now in a hurry to return to French assets and the euro at discounted prices not to miss the post-election rally next Monday, the EURUSD extends gains past 1.0820 this morning, and given the FOMO a post-election rally in the euro, we might see further gains before the weekly closing bell.
Across the Atlantic, the US will reveal its latest jobs figures today and the Federal Reserve (Fed) doves are waiting in ambush to boost their rate cut bets. The US economy is expected to have added around 190K new nonfarm jobs in June down from 272K printed a month earlier and the wages growth is seen weaker. A weaker-than-expected set of data should further fuel the Fed rate cut bets, weigh on the yields and the US dollar, while a positive surprise should get the Fed doves to scale back their rate cut bets – that have been rising lately thanks to a set of soft economic data and dovish Fed comments - and throw a floor under the yields and back the dollar.
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