The euro inched
higher in early European trade on Friday but remained almost a cent off
this week’s highs as investors battened down the hatches for results of
the first round of a tightly-fought French presidential election.
Traders
said an upbeat flash purchasing manager survey from France, added to
polls showing centrist Emmanuel Macron still in pole position ahead of
Sunday's voting had again been enough to settle nerves after a dip late
on Thursday.
There was no obvious reaction to the shooting of a French policeman in central Paris overnight, an attack claimed by Islamic State, the euro climbing around 0.2 percent by 0834 GMT to $1.0734.
Options markets EURVOL= suggest investors remain worried about strong results for far right candidate Marie Le Pen and/or hard left challenger Jean-Luc Melenchon that would point to the risk of another major political shock for Europe in two weeks time.
In line with the run-in to the U.S. election and Brexit referendum last year, most investors looked to have moved to minimize their exposure going into the vote.
Other major currency pairs were also stuck in tight ranges, the dollar easing just 0.1 percent against the yen and less than that against sterling.
All eyes in UK markets were on the morning release of UK retail sales numbers, likely to provide further evidence of a weakening of the consumer demand that has propped up economic growth since the Brexit vote last June.
The pound surged 4 cents on Tuesday after Prime Minister Theresa May shocked the country by calling an early general election for June 8.
There was no obvious reaction to the shooting of a French policeman in central Paris overnight, an attack claimed by Islamic State, the euro climbing around 0.2 percent by 0834 GMT to $1.0734.
Options markets EURVOL= suggest investors remain worried about strong results for far right candidate Marie Le Pen and/or hard left challenger Jean-Luc Melenchon that would point to the risk of another major political shock for Europe in two weeks time.
In line with the run-in to the U.S. election and Brexit referendum last year, most investors looked to have moved to minimize their exposure going into the vote.
Other major currency pairs were also stuck in tight ranges, the dollar easing just 0.1 percent against the yen and less than that against sterling.
All eyes in UK markets were on the morning release of UK retail sales numbers, likely to provide further evidence of a weakening of the consumer demand that has propped up economic growth since the Brexit vote last June.
The pound surged 4 cents on Tuesday after Prime Minister Theresa May shocked the country by calling an early general election for June 8.
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