Macron Win Supports European FX, Offshore Yuan Extends Losses

European currencies have garnered some strength after exit polls showed that Emmanuel Macron has defeated Marine Le Pen in the presidential runoff. This removes a key political risk for European markets, as the prospect of Le Pen presidency kept investors on edge, even as opinion polls consistently favoured Macron. Worth noting that the initial move higher in EUR has quickly lost its initial impetus and EUR/USD has given away the bulk of its earlier gains.

• Oil-tied currencies have faltered as crude has come under pressure after Libya said that it would resume output from shuttered oil fields within days.
• The kiwi dollar is the worst performing G10 currency, closely tracked by its Antipodean cousin. Financial markets in Australia and New Zealand are shut.
• USD/JPY has edged higher but holds a familiar range, with bulls looking for a break above the recent cycle high at Y129.40.
• Offshore yuan extends its recent losses, after USD/CNH printed a one-year high on Friday. This draws attention to the PBOC's yuan fixing, coming up within an hour.
• German Ifo Survey as well as comments from BoC's Macklem & ECB's Panetta take focus from here.