Still, the options markets <EURVOL=> suggests investors are concerned about the chances of strong results for far-right candidate Le Pen and far-left rival Jean-Luc Melenchon.
The dollar, which has been pressured lately by weaker-than-expected economic data and worries about the Trump administration’s ability to pass tax and fiscal stimulus legislation, rose on Friday as traders squared up positions ahead of the weekend.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, was up 0.14 percent at 99.913. The greenback added to gains after President Donald Trump’s told the Associated Press that he will unveil a tax plan next week that includes “massive” tax cuts for individuals and businesses.
The Canadian dollar <CAD=> weakened against its U.S. counterpart to a six-week low as cooler-than-expected domestic inflation reduced pressure on the Bank of Canada to consider interest-rate hikes.
The upcoming election also weighed on the Canadian dollar and the currency could come under further pressure if global risk sentiment took a hit on the results on Sunday, Schamotta said.
