Euro has risen considerably against the dollar to begin the new week on a positive trend following the news of Macron's victory in the first poll of the French elections.
The outcome of this final election will undoubtedly have a significant impact on the foreign exchange market, as Macron's victory means that the euro is more powerful. Hence, EURUSD had risen by 0.20% during the Asian session today to settle at $1.0957 before the current retracement that brought it back to last week's close at $1.08850.
Many political observers believe that Macron's victory is not assured this time. Le Pen has a high chance of winning the elections, given her record with Macron. The only way she can achieve this is if she gets the support of other parties to support her against the incumbent president.
Besides yesterday's second round of elections, other factors are weighing on the euro this week, such as the ECB meeting on Thursday. The ECB is expected to issue its current stance on inflation and rate hikes. Also, they will address the consumer's rising price index emanating from displacements due to the Ukraine wars.