Forex Market Report 09 May 2017

With Volatility falling again with Macron’s win, market reaction was muted. EURUSD briefly spiked over 1.10, however the rise was shot lived with the pair trading currently at 1.0925. Both EUR/JPY and EUR/GBP reversed initial gains on Monday. 

• The dollar rallied above the 113.00 handle to a fresh 2-month high, despite less hawkish comments from the Fed officials Bullard and Mester delivered overnight.
• French stocks slumped 0.9% overnight, their biggest one-day loss in almost three weeks, as investors took profits following strong gains in the run-up to Sunday's vote. Germany's DAX closed 0.2% lower, while Britain's FTSE was marginally higher. Nikkei held on to all of Monday’s 2.3% move higher. 
• Gold prices declined after a mild recovery from the 7 – week low as safe haven demand eases after French election. The yellow metal shown a mild jump till $1236 and declined from that level. It is currently trading around $1227. 

The data calendar is rather thin today, but keep an eye on the Fed speeches by FOMC members including Rosengren (non-voter, hawk) and Fed’s Kaplan (voter, dovish). Last night, the Fed’s Mester said that she supports a June hike.