As many had anticipated, the EURO benefited following Emmanuel Macron’s landslide French Election win against Marine Le Pen, spurring the EUR/USD rate to reach a 6-month high.
Macron, the youngest French leader since Napoleon enjoyed a 66% victory over Marine Le Pen who telephoned to congratulate him after just 15 minutes of the conclusive announcement.
Macron pledged to repair the rift throughout France insisting France will no longer have to look towards more extreme parties. He thanked his supporters for their trust and promised to focus on France‘s social and economic issues.
Following Macron‘s first address to the French public, Le Pen spoke to concede defeat. She took the moment to thank her supporters of the ‘movement’ and said that she would continue her work for French patriots who were averse to globalisation. In total, Le Pen received 11m votes, slightly short of the National Front party’s target of 40%.
Macron will now surely be focusing on the parliamentary election in June in order to establish his party ‘En Marche’ as a legitimate party and win him the necessary seats to implement his new legislations.
These are believed to include the cutting of 120,000 public sector jobs in France. The cut should lower public spending by €60 BN and lower unemployment to below 7%.
As a pro-EU president, Macron will no doubt enforce a tough stance on the UK’s decision to leave the European Union. Having received clear endorsements from Angela Merkel and Jean-Claude Juncker, the ex investment banker will undoubtedly spell trouble for Theresa May‘s plans to leave and strengthen the Union’s resolve, stating in previous interviews that he would take a tough stance on anyone wanting to leave the EU. He also during his manifesto described Britain’s decision to leave the EU as a crime.
In the moments following Macron’s presidential win, Asian markets saw EUR/USD rate strengthen to a 6-month high, exceeding 1.10 reaching 1.1012. In the following hours, EUR/USD retraced its roots as sentiment moved from the Macron’s victory to the ECB’s future continuation of Stimulus.
Following Macron’s victory, GBP/EUR dipped sharply to 1.1757, the loss spurred by profit taking and the potential adversity Macron could add to the UK’s Brexit negotiations. However, the trend quickly reversed with the GBP/EUR pair now hovering around the mid-1.18 range.