Dollar Almost Unchanged As Focus Turns To French Election

Includes: UDN, USDU, UUP

The dollar was almost unchanged against other major currencies on Friday, as investors turned their attention to the first round of the French presidential election after a police officer was killed in a terrorist attack in Paris on Thursday night.

EUR/USD held steady at 1.0714, off the previous session's nearly one-month peak of 1.0721.

A French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State militant group.

Market participants were eyeing the first round of the French presidential election due on Sunday, as recent polls have forecast the most likely outcome to be centrist Emmanuel Macron against far-right candidate Marine Le Pen.

Meanwhile, the greenback recovered from some recent losses after U.S. Treasury Secretary Steven Mnuchin said on Thursday that the administration will unveil a tax reform plan very soon, easing doubts over whether President Donald Trump will be able to pass tax reforms in the near term. The greenback had come under pressure after North Korean state media warned the U.S. earlier in the week of a "super-mighty preemptive strike" and said "don't mess with us."

Sentiment on the U.S. dollar was also fragile following the release on Thursday of disappointing data on U.S. initial jobless claims and manufacturing activity in the Philadelphia area.

GBP/USD was little changed at 1.2810, still within close distance of a six-month high of 1.2904 hit on Tuesday after U.K. Prime minister Theresa May called a snap election for June 8.

Elsewhere, USD/JPY held steady at 109.36.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady at 99.75, after hitting a fresh three-week low of 99.29 on Thursday.

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