Markets reacted positively to the outcome of the French election. While it was already expected that the centrist candidate Macron will win, stock markets in Asia extended gains. European equities are likely to open higher as well, and a gain of at least 1 % seems likely in the German DAX and French CAC index.
The Euro declined overnight, after starting the trading day above 1.10. The Macron win was already priced in, which is why the currency run out of momentum. EUR/USD fell back to 1.0955. Nevertheless, the technical outlook remains positive and the pair should find strong support at 1.09 and 1.0870.
The safe havens JPY and CHF fell in Asia. Demand for precious metals is likely to remain weak in the short-term too, unless a new risk-off theme emerges in the market. Key resistance in Gold is seen at $1235.
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