French Vote With Euro in the Balance

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Updated: Apr 24, 2017, 11:25 UTC

The French elections are just about to conclude and this is the first round of the Presidential elections and the 2 winners from this round will go into a

The French elections are just about to conclude and this is the first round of the Presidential elections and the 2 winners from this round will go into a final vote that is scheduled to take place on May 7. This is an important election not only for the French but its impact could affect the entire Eurozone and could affect the markets much beyond Europe as well. The reason for this is the varied and the diverse candidates that are in contention and the impact that they can have if they are elected to the Presidency.

The Contenders

The chief contenders seem to be Le Pen and Macron. Le Pen is considered to be a kind of hardliner, on the lines of Trump, and he is against the concept of Euro and she wants to establish stricter controls over migration in order to control the Islamist attacks on French soil. Macron is much more business friendly and Euro friendly as well, and he is the youngest contender and considered to be more centrist rather than having any contentious views.

Le Pen was ahead in the opinion polls when the campaigning started but she had to cede her lead to Macron as the elections approached. But the terrorist attacks in France just a few days back seems to have rejuvenated her campaign and it now looks like a tight race. For the FX market, a victory for Le Pen could put the entire concept of the Euro in doubt and that could have very serious consequences on the Euro currency and the Euro economy as well. With the recent times throwing up surprising winners in Trump and a victory for Brexit, nothing can be ruled out.

What To Expect?

The results are expected to roll in within a few hours time and it promises to be a close race though Macron seems to be in the lead in the leadup to the elections. There are a couple of other serious contenders in Fillon and Melenchon but they seem to have lost steam along the way and it would be a huge surprise if any of these two came close to upsetting the top 2. Of course, a lot could happen between now and the run off on May 7 but the election results from today could point to the direction in which the French people are thinking and it could impact how the markets trade over the next couple of days.

About the Author

Colin Firstauthor

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.