The euro hit a six-month high on Tuesday morning as political risks shifted away from Europe, but analysts remained skeptical on whether the move was part of a longer trend upwards for the single currency.
The euro traded at $1.1049 in late morning trade in Europe, the highest level since November 7. "The latest move still reflects the relief of financial markets after the French elections," Carsten Brzeski, chief economist at ING Germany told CNBC via email.
The euro rose substantially in the aftermath of the first round of the French presidential vote and then edged upwards again after the runoff vote two weeks' later. The currency had lost some ground since then, but recently rebounded.
"With political risks fading away, the macro story is surfacing. And it is a positive story. Just confirmed by strong gross domestic product data in the first quarter. (I) think that markets are gradually realizing that the euro zone economy could be the big positive surprise of the global economy this year," Brzeski said.