The US dollar has risen across the board this week as the Fed’s hawkish message on “quantitative tightening”, renewed sanction risks in Europe, and the polling shift in favour of far-right candidate Marine Le Pen ahead of France’s presidential election put pressure on risk sentiment, especially in Europe. The euro is now around its weakest level in two years against the dollar and has lost ground against most other currencies too. The first round of the election is on Sunday; as we set out here, if Le Pen continues to make gains ahead of the second-round run-off on 24th April, we expect that to put further pressure on the euro, and euro-zone financial markets generally.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services