Though the European Central Bank (ECB) has launched fresh stimulus last December by extending its current asset purchase program, key commentaries from top official and slowdown in the pace of purchase (ECB would buy €60 billion per month from April to December compared to previous €80 billion per month) indicate that the central bank is not likely to add fresh stimulus, instead, the next move would be a hawkish one.
The market hasn’t started pricing it and the impact of actions like these from other central banks on the dollar fully’ and that is due to the looming political uncertainties surrounding especially the French election. One of the top contenders, Front National leader Marine Le Pen’s win could very well mean the end of the euro system. Hence, if her major opponent, the pro-EU leader Emmanuel Macron wins, we might see a flurry of risk on bets hitting the market and that is sure to benefit the euro, which is currently trading at 1.067 against the dollar.
Our calculations show that if Macron wins a decisive victory in the upcoming French election, it would open up the possibility of a test of the key resistance area around 1.16 against the dollar. However, the single currency is first likely to face resistance around 1.10-1.11 area.


Best Gold Stocks to Buy Now: AABB, GOLD, GDX 



