(Updates prices, adds comment, changes byline, dateline;
* Euro eases from 6-month high vs dollar, 1-yr high vs yen
* Dollar index rises above 6-month low plumbed earlier
* Euro prospects brighten after Macron's victory
By Gertrude Chavez-Dreyfuss
NEW YORK, May 8 The euro fell from six-month
highs against the dollar on Monday, after Emmanuel Macron's
widely expected victory in France's presidential election, as
investors took profit on a roughly three percent gain for the
currency since he won the first round two weeks ago.
Macron's overwhelming win on Sunday briefly pushed the euro
above $1.10 versus the greenback, the highest since the U.S.
presidential election in November.
"The euro couldn't sustain the rally as it took to
consolidating a 3 percent spike since France's presidential vote
started two weeks earlier," said Joe Manimbo, senior market
analyst, at Western Union Business Solutions in Washington.
"Nevertheless, the euro appears to have emerged from the
French vote with a relatively bullish bias as dissipating
political risk should intensify the spotlight on the (European
Union) bloc's improving economic prospects."
Macron's defeat of nationalist Marine Le Pen has relieved
investors who had feared another populist upheaval after
Britain's vote to exit the European Union and Donald Trump's
election as U.S. president.
The euro rose as high as $1.1023, a six-month peak.
It also jumped to a one-year high of 124.58 yen.
But by midmorning in New York, the euro fell 0.5 percent to
$1.0944 against the dollar, and 0.4 percent versus the yen to
The removal of the political risk investors had associated
with Le Pen - who had promised to take France out of the euro -
prompted investors to refocus on economic fundamentals and the
pace of monetary policy normalization in Europe and the United
Short positions on the euro reached their lowest level since
early May 2014 in the week up to last Tuesday, data showed on
"It's really a question now of what's going to happen next
with respect to the U.S. Federal Reserve with one rate rise
priced in between now and the end of the year, and what's the
probability that the European Central Bank will look to taper
monetary policy before the end of the year," said Michael
Hewson, chief markets analyst at CMC Markets in London.
Friday's U.S. job numbers were solid and yield spreads
support the dollar over the euro. But traders were also more
confident about the prospect of the European Central Bank moving
away from its bond-buying stimulus program.
The dollar index, which tracks the U.S. currency against a
basket of six rivals, added 0.3 percent to 98.966, after
dipping as low as 98.543 earlier, its lowest since November.
(Additional reporting by Ritvik Carvalho in London; Editing by