Euro pulls back after France-led surge

London

THE euro retreated from 5-1/2 month highs against the US dollar on Wednesday, investors cashing in gains made on the back of the first round of France's presidential elections and a market rethink on eurozone monetary policy.

Attention was also turning to US President Donald Trump's promised announcement on tax cuts, supporting a reheating of the dollar-positive "Trumpflation" trades that dominated the end of last year but have waned since.

The yen - a sufferer this week from buoyant sentiment on stock markets since the French vote on Sunday - was steadier while Australia and New Zealand's dollars both fell more than half …