On Friday, the US dollar rose on labor market data, but after that the US Dollar Index retreated from the formed highs, decreased to support at 100.6 basis points. Even the speech of the head of the Federal Reserve on Monday didn’t help the American.
Janet Yellen noted the growth of employment, and economic stability in the country. But the geopolitical risks which cause fears of market participants about the possibility of aggravation the situation in the Middle East and Korea don’t allow the US dollar to continue its growth.
At the same time euro is traded near to the level of 1.06 in the pair EUR/USD. Upcoming presidential elections in France do not allow strengthen the position of a single currency. Polls show a change in sentiment in the country, which increases intrigue. Investors remember events of the last year, in this regard, the credibility to the polls is not too much.
Therefore, market participants will wait for the final results of voting in France before making new deals. Since even if the first reaction of the euro will be sharp, the movement of the single currency on this will not end and is more likely to continue in the medium term.