Euro strengthens after French election results. This week, the spotlight is on key economic data releases and the progress of the UK and EU general elections.
The GBPEUR hit a 21-day low after Le Pen’s party underperformed, reducing the likelihood of a far-right overall majority in the French parliament. Markets are now anticipating the second round of votes, with a ‘hung’ parliament being the most probable outcome.
Meanwhile, GBPUSD is trading near a weekly high. This week’s market calendar includes a mix of crucial US data releases and the UK’s election, which is expected to introduce some market volatility.
A significant event to watch is Federal Reserve Chairman Jerome Powell’s speech at the European Central Bank’s conference tomorrow. Investors will be closely monitoring his comments for any hints about a potential rate cut in September. Recently, Powell emphasized the strength of the US labour market, steering away from discussions on reducing interest rates.
In the US, the highlight of the week will be Friday’s non-farm jobs report, with forecasts predicting the addition of 195,000 jobs.
For more detailed insights on how these developments could impact your business or to take advantage of market volatility, please reach out to speak with one of our experts.