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Euro Advances On Macron Lead In French Election

The euro firmed against its major opponents in the early European session on Thursday, as a latest poll showing growing support to independent centrist Emmanuel Macron in the first and second round of French Presidential election soothed fears over a Frexit.

The Harris Interactive poll showed Macron enjoyed a significant lead on far-right leader Marine Le Pen in the first round of election with 25 and 24 percent, respectively. Both Fillon and Melenchon scored 19 percent of votes.

In the second round, the poll found that Macron would emerge as a clear winner with 66 percent of votes, compared to Len Pen's 34 percent.

The currency was also underpinned by broad-based dollar weakness, amid dimming hopes of a June rate hike as well as delayal of much anticipated tax reform plan by Trump administration.

Rising risk appetite also aided strength to currency, as most European stocks climbed after oil prices regained some lost ground and investors cheered a slew of positive earnings updates from the likes of ABB, Schneider Electric, Publicis Groupe and Unilever.

Figures from Eurostat showed that Eurozone construction output increased notably in February, after falling in the previous two months.

Construction output climbed a seasonally adjusted 6.9 percent month-on-month in February, reversing a 2.4 percent decrease in January, which was revised from a 2.3 percent drop reported earlier.

The currency showed mixed trading in the Asian session. While the euro held steady against the franc and the pound, it rose against the yen and the greenback.

The euro advanced to more than a 3-week high of 1.0776 against the greenback, from a low of 1.0709 hit at 5:30 pm ET. The euro is seen finding resistance around the 1.10 area.

The euro climbed to a 9-day high of 117.50 versus the yen, 2-day high of 0.8395 against the pound and a 2-week high of 1.0717 against the franc, from its early lows of 116.48, 0.8362 and 1.0680, respectively. The next possible resistance for the euro may be found around 120.00 against the yen, 0.85 against the pound and 1.08 against the franc.

The euro spiked to a 3-month high of 1.4335 against the aussie, more than 3-week highs of 1.4526 against the loonie and 1.5370 against the kiwi, off its early lows of 1.4258, 1.4433 and 1.5209,respectively. Continuation of the euro's uptrend may see it challenging resistance around 1.45 against the aussie, 1.47 against the loonie and 1.55 against the kiwi.

Looking ahead, at 7:30 am ET, the Bank of England governor Mark Carney participates in a panel discussion at the Bank of France event, in Washington.

U.S. weekly jobless claims for the week ended April 15 and leading indicators for March are set for release in the New York session.

Federal Reserve governor Jerome Powell speaks on economic growth and capital markets in Washington D.C at 8:00 am ET.

At 10:00 am ET, Eurozone flash consumer confidence for April will be released.

by RTTNews Staff Writer

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