EUR Outperforms As French Risk Aversion Eases

Early G10 FX trends have been dominated by EUR gains, which has weighed on broader USD index. The BBDXY index last near 1268.4, off around 0.10% so far for Monday trade.

• EUR/USD is up around 0.30%, last near 1.0745/50, which is close to session highs. Sentiment has been aided by the first round of French Parliamentary election results, which showed Le Pen's far right party didn't poll as strongly as some opinion polls suggested, while left leaning parties vowed to bloc Le Pen's majority ambitions.
• EU equity futures have opened up +1% firmer, while French bond futures are also higher (suggesting some narrowing in the French-German spread).
• Safe havens have underperformed at the margins. USD/JPY is higher, last near 161.00, as EUR gains on crosses. USD/CHF back near 0.9000.
• The Japan Tankan survey was mixed with large manufacturing outperforming from a sentiment standpoint. The authorities this will be hopeful this leads to better growth outcomes.
• AUD and NZD sit higher, the A$ last near 0.6670, NZD/USD outperforming, the pair last near 0.6100.
• Still to come, we have the Australian inflation gauge, while the China Caixin manufacturing PMI is also out.