The tumultuous French elections had undermined confidence in the Euro, raising real concerns about the future and stability of the common currency. However, as evidenced by momentum in the currency, Macron's victory was expected and largely priced-in by markets. Analysts now do not expect much further upside from the “Macron-trade.” With the French election uncertainty off the table, economic data will once again take centre-stage. Any sign the European Central Bank will turn less dovish could fuel the next leg of the Euro uptrend.
ECB Chief Economist Peter Praet hinted last week that the Central Bank's current ultra-easy monetary policy could change, and the ECB might start considering hiking interest rates as early as June. EURUSD hit a six-month high earlier on Monday, edging above 1.1000 before giving up some of those gains to last trade around 1.0985.