For some time now, political concerns have been causing weakness in the euro. However, for the first time in 3 years, this weakness is fading as political concerns wane. Today, we'll talk about the change in tides on the political front, how the euro reacted, what this means for the currency moving forward, and what binary options traders should be watching for ahead.

Political Concerns Surrounding The Euro Are Fading 

As mentioned above, the Euro is having a strong time in the market as of late, thanks to the declining concerns surrounding political developments. Those recent political developments include…

Emmanuel Macron Victory – First and foremost, news recently broke that Emmanuel Macron has won the French parliamentary elections. This is overwhelmingly positive news for the euro as Macron takes a pro-EU stance and is focused on the vigorous rejuvenation of the economy in France. While Macron is only 39 years old, and his entire party s formed just over a year ago, consumers, investors, and economists seem to share the same views that he will bring stability back to France.

Greece Agreement – Another story that broke recently surrounds an agreement between Greece and its creditors. The agreement will allow for new loans to be released. Considering the struggling nature of Greece for some time now, these loans are much needed to fuel economic growth, and will likely play a role in an improving euro.

UK Election Results – Finally, we all know about the UK election, in which Theresa May's gamble with regard to a snap election backfired. Following the results, the Conservative party is no longer the dominant party in the UK parliament. As a result, Europe will likely have a stronger hand in Brexit negotiations, which is a big win for the European economy and the euro.

The Euro Is Reacting

At the end of the day, the euro is having a strong reaction to the calming political conditions. This is particularly the case when it comes to leveraged funds. In fact, according to CFTC data, last week, leveraged hedge funds increased their euro positions to “net long”. This is the first time the euro has seen this in 3 years. In a statement, Vincent Juvyns, global market strategist at J.P. Morgan Asset Management, had the following to offer…

“Political risks have reduced in Europe… We had a neutral position on euro and an underweight position on European equity markets at the start of the year which we have been gradually upgrading to overweight over the last couple of months.”

What This Means For The Euro Moving Forward

Moving forward, the euro could be headed for quite the recovery. At the end of the day, the largest risk to the euro has been on the political side of the coin. Without this risk weighing the currency down, it could climb!

What Binary Options Traders Should Be Watching For Ahead

Moving forward, there's no doubt that the euro is likely to present several opportunities for binary options traders. However, in order to take advantage of these opportunities, you'll need to keep a close eye on the news. In particular, pay close attention to what's happening on the political and economic fronts. Any updates with regard to either of these stories will likely lead to movement in the currency that traders can capitalize on for a profit!