The French election resulted in a hung parliament, a somewhat counterintuitive outcome in favour of the market. The Euro (EUR) still faces downside risks during the complicated coalition negotiations and given long-term fiscal concerns, notes Francesco Pesole, FX Strategist at ING.
EUR/USD is primed for some selling this summer
“The French election resulted in a hung parliament, a somewhat counterintuitive outcome in favour of the market. But given fiscal concerns, markets had a preference for Marine Le Pen’s alliance over the left-wing group to win more seats. The Euro still faces downside risks during the complicated coalition negotiations and given longer-term fiscal concerns.”
“So if you’re looking for a stellar performance, look elsewhere than the Euro. Political uncertainty aside, Eurozone activity surveys are starting to lose momentum; and an ECB reliant on its own (optimistic) inflation projections can still cut twice in 2024.”
“We believe that any US macroeconomic data-driven rally near 1.10 will offer opportunities for strategic EUR/USD selling this summer.”
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.
