24/02/2017 - Euro Retraces Following Increased 'Frexit' Concern

EUR

The Euro lost ground during yesterday’s session after the chief executive of France's largest insurer, Axa, said they were not eyeing any future transactions as "Frexit is a probability".

With the increasing likelihood of National Front leader Marine Le Pen winning France's presidential election in April, Axa's share price is down around five per cent since the start of 2017.

Polls indicate Le Pen is expected to attract the most votes in the first round of voting, but they indicate she would be overtaken by independent candidate Emmanuel Macron in the second round.

USD

The Dollar weakened after data revealed the number of Americans filing for unemployment benefits increased last week, while staying within a range that shows subdued firings.

Jobless claims rose by 6,000 to 244,000 in the week ended February 18th, indicating a tight labour market and growing economy are prompting companies to hold on to employees, setting the stage for larger wage gains. The latest tally marks 103 straight weeks of claims below 300,000, the level economists consider consistent with a healthy labour market.

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