The Euro is skyrocketing. Overview for 24.04.2017

The main currency pair is trading to the upside being influenced by the first voting results of the presidential elections in France.

France has every right to celebrate as the risks of exiting the European Union are slowly decreasing, but these emotions are sure to fade away in a couple of days and the EUR/USD pair may start a correction. So far, the situation for the instrument is very positive, the current quote is 1.0869.

Last Sunday, the first of the two votings of the presidential election took place in France. The first voting was won by Emmanuel Macron, a neutral candidate, but infamous Marine Le Pen was a runner up and will also take part in the second voting. Everything happened the way it was expected, but investors were pretty happy about it. Even in theory, a possible exit of France from the European Union, which was the foundation of euroskeptics’ election campaign, terrified the country’s population. Even those, who are rather far away from the financial world, understood that Paris couldn’t afford such a move.

So, how do you do good to the market? First of all, you have to make it worse and then bring everything back. This is exactly what is happening to the currency market and the main currency pair right now.

There aren’t many statistical reports in the macroeconomic calendar the beginning of the week, that’s why the Euro will probably remain “tall in the saddle” on Monday and the next several days. After that, everything will slowly get back to normal. The similar emotions are very unlikely that happen after the second voting, which is set to take place on May 7^th.

Overall, France has already made its choice and chosen stability and calmness as opposed to disturbances and expenditures that might occur if Le Pen or Jean-Luc Mélenchon, a person with the similar political beliefs, outvoted the other candidates. Even with all things considered, one should understand that the French president doesn’t have an absolute power in the country – after the second voting and the inauguration, National Assembly elections, which are set for June 11^th and 18^th 2017, will matter much more. These are the important dates, when France finds out if “En Marche!”, the party led by Macron, gets the majority. The logic suggests that it’s very unlikely, which means that France may face a lot of difficult political decisions and struggles in the years to come. It’s not the best news for the Euro in the long-term, but right now no one worries about it.

RoboForex Analytical Department