LONDON (Reuters) – The euro recovered some ground against the dollar on Monday after weekend talks aimed at finding a leftist unity candidate for France’s presidential election showed little sign of progress.
News that Socialist Benoit Hamon and hard-left rival Jean-Luc Melanchon were discussing cooperation in their bid for the presidency weakened the euro and supported the yen on Friday.
Investors believe such a tie-up could either backfire and propel far-right, anti-globalization candidate Marine Le Pen into the Elysee palace or succeed and land France with a far-left president pursuing deficit-boosting economic policies.
But policy proposals outlined by Melanchon on Sunday underscored the gap he would have to bridge with Hamon to find a common platform for the April and May polls also helped boost the euro.
Source: Investing.com (20 February 2017)