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The euro rose till the 1.0920 level answering with relief the result of French elections' first round. Some profit taking prompted the currency to dip below the 1.09 level and reaching an intraday low at the 1.0820 level.
Sterling is flat. It is squeezed between the 1.2850 and the 1.2750 levels. The Bollinger band is widening, though the 20, 55 and 100-day SMAs are below the intermediate Bollinger band, which is located slightly above the 1.26 level. It seems that before resuming its trend higher, it will likely test some levels between the 1.26 and 1.27 levels.
Dollar/yen finally rose above the 110 level. A correction might soon place leading the exchange rate below the previous mentioned level. The first support is given by the newly calculated weekly R1 at the 109.70 level. If the dollar gathers support and outperforms the yen, the closest resistance is set by the 111.07 level, where the weekly R3 is located at.
Gold is off. With Macron and Le Pen moving through, the risk-on sentiment is once again demanding investors to seek riskier assets such as equities, which are outperforming today with the DAX topping at 12.400 points and the CAC40 near the 5.300 benchmark.
Oil recovered some the losses inflicted last week during Asian session an early European session. A leak that Iran is struggling to raise exports after clearing out stocks stored on tankers boosted the commodity. Though, at 1430 GMT oil prices are off the previous close.
Today’s main topic is of course the result of French elections. Macron won 23.8% of votes in the first round, while Le Pen took 21.5%. 79% was the turnout.
Macron has a pro EU-agenda and if elected, it will be the youngest President France has ever had. Macron speech last night (BBC news article):
Le Pen, widely known for its anti-immigration and anti-European agenda argued that voting for her was the key to the "survival of France". Le Pen speech last night (BBC news article):
Finally, one expected result predicted by pollsters. But some reflections need to be addressed:
Sterling is flat. It is squeezed between the 1.2850 and the 1.2750 levels. The Bollinger band is widening, though the 20, 55 and 100-day SMAs are below the intermediate Bollinger band, which is located slightly above the 1.26 level. It seems that before resuming its trend higher, it will likely test some levels between the 1.26 and 1.27 levels.
Dollar/yen finally rose above the 110 level. A correction might soon place leading the exchange rate below the previous mentioned level. The first support is given by the newly calculated weekly R1 at the 109.70 level. If the dollar gathers support and outperforms the yen, the closest resistance is set by the 111.07 level, where the weekly R3 is located at.
Gold is off. With Macron and Le Pen moving through, the risk-on sentiment is once again demanding investors to seek riskier assets such as equities, which are outperforming today with the DAX topping at 12.400 points and the CAC40 near the 5.300 benchmark.
Oil recovered some the losses inflicted last week during Asian session an early European session. A leak that Iran is struggling to raise exports after clearing out stocks stored on tankers boosted the commodity. Though, at 1430 GMT oil prices are off the previous close.
Today’s main topic is of course the result of French elections. Macron won 23.8% of votes in the first round, while Le Pen took 21.5%. 79% was the turnout.
Macron has a pro EU-agenda and if elected, it will be the youngest President France has ever had. Macron speech last night (BBC news article):
I hope that in a fortnight I will become your president. I want to become the president of all the people of France - the president of the patriots in the face of the threat from the nationalists
Le Pen, widely known for its anti-immigration and anti-European agenda argued that voting for her was the key to the "survival of France". Le Pen speech last night (BBC news article):
Wherever they come from, whatever their origin, whatever they voted for in the first round, I invite them all to join us and to abandon ancient quarrels and to concentrate on what is essential for our country
Finally, one expected result predicted by pollsters. But some reflections need to be addressed:
- If elected, Macron will not have the backing of an established political party;
- France’s actual political scenario is deeply divided, reinforced with the fact that none of the candidates could catch at least 30% of voting in the first round;
- None of France's main left-wing or right-wing parties will be represented in the second round;
- Le Pen’s likely defeat in the second round might not be regarded with a total relief – in the short-term the impact will be that one – though, if Macron underperforms during his mandate, Le Pen will likely be the next one blinking an eye.
