The Euro US Dollar (EUR/USD) exchange rate is trading flat at US$1.0730 as French political uncertainty continues to weigh on the Euro. The far-right National Rally party has announced its commitment to France's existing budgeting rules, while the leftist New Popular Front plans to increase public spending. This lack of clarity and potential split across the political spectrum in France's government is keeping the Euro softened [dade6db1].
Meanwhile, the US Dollar lacks direction as markets await the latest US consumer confidence data, which is forecasted to show a slip in sentiment. Investors are also focused on the latest German GfK consumer confidence data and a speech from the European Central Bank (ECB) Chief Economist Philip Lane. The German data is expected to show a slight decrease in pessimism among German households, while Lane's speech may impact the timing of future interest rate cuts. Additionally, investors will be watching for the final GDP growth rate reading for the first quarter of 2024 for the US Dollar [dade6db1].
The Euro US Dollar exchange rate remains flat as uncertainty in French politics persists. The lack of clarity and potential split in the French government is keeping the Euro under pressure. Meanwhile, the US Dollar is awaiting key economic data and speeches that could impact its future performance [dade6db1].
EUR/USD opened with a bullish gap and climbed toward 1.0800 during the Asian trading hours on Monday. Exit polls showed Marine Le Pen's far-right National Rally (RN) party won around 34% of the vote in the first round of France's parliamentary election. The left-wing coalition New Popular Front (NFP) and President Emmanuel Macron's Together alliance are projected to receive 29% and 20.5%-23% of the vote, respectively. The Euro gathered strength as Le Pen's NR's vote came in below most projections. The Euro Stoxx 50 opened higher and was last seen gaining 1.6% on the day. Germany's Destatis will release preliminary Consumer Price Index data for June. Later in the session, the ISM Manufacturing PMI will be featured in the US economic docket. EUR/USD Technical Analysis: Immediate resistance at 1.0760, next resistance at 1.0800, and 1.0840. Supports at 1.0740, 1.0700, and 1.0670 [82f158e1].