The euro experienced an election, what next?
On Monday, after the elections in France trades on EUR / USD pair opened with a small gap up. I won by a supporter of the European Union Emmanuel Macron, beating nationalist Marine Le Pen by a margin of 66.10% against 33.10%. But the real test is yet to come for him – a month elections will be held in the French Parliament (11 and 18 June), where Macron will still be needed to form a parliamentary majority, given that it is – a non-partisan candidate. This situation is not conducive to the stability of the euro, which flew up to full speed in anticipation Makron victory. Now the newly made president needs to prove its ability to go to the promises of a particular policy. Otherwise, it is only defer for five years the victory of the radical nationalists. At the same time that the head of the Radical Party took place in the second round for the first time in history, it speaks volumes. At Le Pen will vote in the Parliament, by means of which it will be able to influence the legislative activities of France, so Europeans should not relax.
Let’s go back to the euro. Financial market participants more or less to “digest” the French elections and to look at the policy of the European Central Bank – if it is not going to raise interest rates against the background of the stabilization of the economic and political situation in the euro zone?
This morning, the head of the Central Bank of Luxembourg, member of the Executive Board of the ECB’s Iv Mersh, who is entitled to vote in the decision on interest rates, gave a speech. He said that the euro zone economy is increasingly recovering economic sentiment in the 6-year high, unemployment – to 8-year low, investments are rising.
“While the ECB Governing Council is convinced of the need to maintain its monetary policy, we could examine its impact in the new environment of balanced perspectives, rather than deflationary risks”, – he said.
His rhetoric contains hints of a possible revision of the ECB’s policy in the future, and while it Mr. Mersch has no significant impact on the euro, it may be regarded as indicative of the possible direction of further ECB action.
Recall, the head of the ECB Mario Draghi will deliver a speech on monetary policy on Wednesday. Before his speech can be seen increased volatility in the euro as well as the growth rate – if market participants would rely on his “hawkish” rhetoric.
EUR / USD: The dollar strengthened against the euro in anticipation of new data On Monday morning, Dollar shows the growth of the euro – Investors are…
How strong euro may allow the ECB? The European Central Bank is not so easy to part with old habits. The ECB argues that it is not the euro are targeted,…
Euro range will escape from NAB says that the rate of the European debt market and the euro are currently in the growth stage of the pulse, which implies…
- Setting BuySellProf_Security expert for profitable
- Forecast from company ForexMart
- Currency market Bitcoin is aimed for 2000