Market Reaction: The euro strengthened to 1.0776 against the USD and 0.8500 against the GBP following the first round of French elections, driven by hopes that the National Rally (RN) will not secure a parliamentary majority.

Election Results: Predictions indicate RN at 33%, the left-wing New Popular Front at 28%, Macron’s centrist alliance at 21%, and the centre-right Republicans at 10%.

Strategic Withdrawals: To block the RN, other parties, including Macron’s, are considering withdrawing third-place candidates in key constituencies to prevent RN victories in the second round on July 7th.

Euro Outlook: Uncertainty persists with possible outcomes including a hung parliament or RN cohabitation government, potentially ending the euro's current relief rally.

EUR/USD Relief Amid Uncertain French Election Outcome

Jul 02 2024

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