Dutch elections: Euro gets a boost as status quo is maintained

Eurozone’s first political risk for this year is out of the way, as the party of the current Dutch PM Mark Rutte retained the most seats in the lower house of Parliament, according to the results of yesterday’s election. Although the Eurosceptic candidate Wilders also received notable support, his showing was not as strong as most polls suggested. EUR/USD was initially lifted by the cautious FOMC signals, and this political development provided another boost to the pair. In our view, the outcome of this election could take some momentum away from the campaign of the French Eurosceptic candidate Le Pen in coming days and thereby, keep EUR/USD supported.

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