Euro advances as Macron heads for huge majority

The British pound meanwhile headed back toward last week's lows that had been triggered by a shock British election result that has thrown the country into uncertainty.

Euro advances as Macron heads for huge majority

World Bulletin / News Desk

The European single currency advanced Monday after French voters put President Emmanuel Macron's party on course for a crushing parliamentary majority. 

Around 1045 GMT, the euro jumped above $1.12 after Sunday's first round of voting for the France's National Assembly.

The pound fell back to $1.2718, having recovered from Friday's seven-week low of $1.2636.

In France, projections showed Macron's Republique en Marche (Republic on the Move, REM) party and its ally MoDem tipped to win between 400 and 445 seats in the 577-member National Assembly in next Sunday's second round.

"The rejection of populism has been one the main reasons why the euro has been the best performing G10 currencies this year," said Lee Hardman, currency analyst at Bank of Tokyo-Mitsubishi UFJ in London.

"There were further positive political developments In Europe over the weekend as the French public provided another vote of confidence in President Macron's policy agenda for economic reform."

Official final results showed Macron's one-year-old REM and allies MoDem winning 32.32 percent, ahead of the Republicans on 21.56 percent and the FN on 13.20 percent. 

Such a share would give Macron -- who founded his party just a year ago -- one of the biggest parliamentary majorities seen in the modern French state.

Last Mod: 12 Haziran 2017, 14:33
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