France’s surprise shift from far-right to far-left [Video]
|The second round of French legislative election brought new surprises on the table – to say the least. Not only Marine Le Pen’s far-right National Rally didn’t win a majority but the New Popular Front – which is a leftist coalition led by the far-left Jean Luc Melonchon – secured the biggest share of the cake, and did too well to soothe investors’ concerns regarding stability and the predictability of the French politics and the good health of the French finances. The market reaction was a swift fall in the euro at the open, the franc gained on the back of an early flow of capital to its safety, but the EURUSD recovered most of losses before the Europeans have stepped in.
In equities, shares of French banks will particularly be in focus. dividends and share buybacks.
Across the Atlantic, last week ended with heightened hope of Federal Reserve (Fed) rate cuts on Friday’s soft jobs data. Later this week, Fed Chair Jerome Powell’s semiannual testimony and the release of the all-important US CPI update will take the center stage.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.