Tag Archives: FXnews

French Election Results Shake Markets

Overnight, financial markets were abuzz with the latest developments in the French elections.

After a strong showing in the first round, Le Pen’s Rassemblement National (RN) experienced a significant decline over the weekend, falling from first to third place. Tactical voting in Sunday’s second round thwarted Marine Le Pen’s far-right party, leaving France in a state of political uncertainty as no party secured an absolute majority.

In a surprising turn, the New Popular Front (NFP) — a coalition of parties ranging from the far-left France Unbowed to the moderate Socialists and Ecologists — emerged with 182 seats in the National Assembly. This made them the largest group, yet still short of the 289 seats needed for a majority.

Macron’s centrist Ensemble alliance secured 163 seats, while Marine Le Pen’s far-right National Rally (RN) and its allies claimed 143 seats. Following these results, French Prime Minister Gabriel Attal, a protégé of Macron, announced his resignation effective Monday morning. The identity of his successor remains uncertain.

The euro has reacted to these developments by dropping, as France enters a period of political and fiscal uncertainty.

Today’s economic calendar is relatively quiet, with only German trade export/import numbers and US consumer credit data expected to draw any interest. The focus will shift to the UK on Thursday, with GDP, Industrial Production figures, and CPI numbers due to be released.

For more insights on how these events could impact your business or to capitalize on market volatility, please reach out to speak with one of our experts.

Labour’s Victory and Upcoming French Elections Stir Market Sentiments

Overnight, the Labour Party became the new government in the UK, a development that was widely anticipated. Consequently, the markets had already priced in a Labour win, resulting in little to no movement for the pound. However, with the second round of the French elections coming up on Sunday, we can expect increased market volatility heading into next week.

The stability of the British pound following Labour’s victory indicates a sense of political steadiness, which is reassuring for investors. In contrast, the potential win of the far-right political party in France’s upcoming election introduces a layer of uncertainty, likely to affect the currency market.

Yesterday, the United States celebrated Independence Day, leading to a pause in economic data releases. As markets reopen today, all eyes are on the release of Non-Farm Payrolls, a critical indicator of the current state of the US economy.

On the currency front, the pound has maintained its strength against the euro, reflecting further stability and resilience. Additionally, the pound has shown significant strength against the dollar, currently trading at its highest level since June 13th.

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.

Breaking News: Britons Head to the Polls in Pivotal Election

Today, Britons are casting their votes in a parliamentary election that is widely expected to bring Keir Starmer’s Labour Party to power, ending Prime Minister Rishi Sunak’s 14-year Conservative tenure.

Opinion polls indicate that Starmer’s centre-left party is on track for a landslide victory. Many voters are seeking change after years of internal conflict and turmoil within the Conservative Party, which has seen five prime ministers in the past eight years.

Despite calling the election months earlier than planned, Sunak has recently shifted his campaign focus from securing a fifth consecutive Conservative victory to warning about the potential risks of an unchallenged Labour Party in parliament.

If the opinion polls are accurate, Britain will join other European nations in holding their governments accountable for the cost-of-living crisis sparked by the COVID-19 pandemic and Russia’s invasion of Ukraine. However, unlike France, Britain appears to be moving towards the centre-left rather than the far-right.

In other news, the United States is observing a market holiday in celebration of Independence Day. Across the Atlantic, the main European release of interest is the European Central Bank’s June meeting account, offering additional insights into the central bank’s recent decision to decrease interest rates by 25 basis points.

For more detailed insights on how these developments could impact your business or to take advantage of market volatility, please reach out to one of our experts.

Today’s economic calendar kicks off with the Eurozone Consumer Price Index. Investors are eager to see if the recent interest rate cut has made an impact, with markets anticipating a slight drop to 2.5 percent from 2.6 percent.

Attention then shifts to major speeches this afternoon from European Central Bank President Lagarde and Federal Reserve Chairman Powell. Their remarks could offer valuable insights into future monetary policy.

The rest of the week is dominated by US data, which might pressure the pound further against the dollar. Key US releases include the ISM Non-Manufacturing Survey on Wednesday and the Non-Farm Payrolls on Friday.

Political events are also in the spotlight, with the UK general election on Thursday. The uncertainty surrounding the potential for a Labour government is expected to create currency market volatility.

Following the UK election, the second round of the French elections begins on Sunday, likely causing additional market fluctuations as we head into next week.

On the currency front, the pound remains below the 34-month highs seen in June. With limited UK data and the general election this week, there could be opportunities to leverage limit orders. Meanwhile, the dollar is poised to gain further strength against the pound following the week’s data releases.

For more insights on how these developments could impact your business or to capitalise on market volatility, please reach out to one of our experts.