Reported 12 months ago
The euro's rebound after the first round of France's legislative elections hides lingering pessimism on the currency's outlook before the second vote. Options traders are cautious, as shown by demand for euro bearish structures, indicating skepticism about the currency's recent gains against the pound and the Swiss franc. While the initial market rally following Marine Le Pen's group's win in the first round faded, optimism dimmed, with attention turning to mainstream parties' strategies to prevent her group from gaining power. The euro fell to $1.0719 after reaching a two-week high at $1.0776, reflecting the uncertainty leading up to the July 7 second-round vote.
Source: YAHOO