Prime News: Euro Firms as Dutch Exit Poll Ease Political Risks

The Euro surged to its highest level in over four weeks after an exit poll showed that Dutch Prime Minister Mark Rutte’s Liberals has managed to fend off the Geert Wilders’ anti-Islam Freedom Party in Wednesday’s election, easing concerns regarding the expansion of populism in the bloc.

The shared currency of the euro area was bound for its biggest gain versus the dollar since June, piling on gains made after the U.S. Federal Reserve ruled to hike its key rate on Wednesday. The Liberal Party is estimated to secure 31 seats in the 150-seat lower house Parliament, compared to the 19 seats seen to be taken by the Freedom Party.

If the outcome is affirmed, this would represent a rebuke of Wilders’ platform which covered following Britain’s step to withdrawal from the EU, which would mean leaving the euro as well. Analysts said it would also be a positive turn of events for the euro as it overcomes one political challenge and lower the countering force of political risks.

The euro rose 1.43 percent to $1.0740, its highest since February 7 and its biggest gain since June. Meanwhile, the yields on the 10-year French government bonds retreated 5 bps to 1.04 percent.

The material has been provided by InstaForex Company – www.instaforex.com