The result of the first round of the French legislative elections did not bring any major surprises, they say OCBC strategists Frances Cheung and Christopher Wong.
The Euro will face new pressures
“Initial projections from polling firms suggested that the far-right Rassemblement National (RN) party was projected to win between 33% and 34.2% of the vote, the left-wing coalition between 28.5% and 29.6% of the vote and Macron’s centrist alliance between 21.5% and 22.4% of the vote.”
“Potentially, the Euro (EUR) could face further pressure. Markets are watching to see if Marine Le Pen’s far-right party wins an absolute majority in the National Assembly, which would allow it to pass legislation more easily. Potentially, this scenario could be more negative for the EUR than a hung parliament outcome.”
“EUR/USD was last trading at 1.0750 levels. Bearish momentum on the daily chart is showing signs of fading while the RSI has turned higher. Risks are skewed to the upside. Resistance at 1.0760 (21-DMA), 1.0780 (50-DMA), 1.0810 (38.2% Fib retracement of 2024 high to low, 100-DMA). Support at 1.0710, 1.0660/70 levels (recent low).”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
