Euro firmer ahead of first round of French polls

London

THE euro jumped around half a per cent against the dollar on Thursday as some traders shut down broad bets against the common currency and French assets ahead of the first round of presidential elections on Sunday. The countdown to the French vote, which polls suggest will usher far-right candidate Marine Le Pen into a two-person runoff next month, has seen market measures of implied currency volatility surge week on week by the largest extent since the launch of the euro.

However, the euro itself has firmed, gaining 1.5 per cent since the start of a shortened trading week on Tuesday to reach its highest level since the end of March. By 1030 GMT it was up 0.45 per cent on the day at US$1.0760.