EUR/USD is trading sideways within a 1.0660-1.0760 range unable to decide its direction ahead of the first round of FranceÂ’s snap election on June 30, DBS analyst Philip Wee notes.
“EUR/USD is in a 1.0660-1.0760 range, awaiting the first round of France’s snap election on June 30. Assuming none of the parties win an outright majority, a second round will be held on July 7. The polls suggest President Emmanuel Macron’s party will not secure an outright or relative majority.”
“The far-right National Rally leader, Jordan Bardella, said he would not become Prime Minister without an outright majority. Hence, France is looking at a “cohabitation” with Bardella as Prime Minister and Macron as President or political paralysis.”Â
“The European Central Bank (ECB) will probably play down EU break-up risks at its Forum on Central Banking in Sintra next week. The ECB and the other global central banks will probably be closely aligned in their plans to navigate a data-dependent path toward removing top-level restrictions on rates for the rest of this year.”
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