Forex Marketz Daily Forex News – Fully Markets Update
The euro, or EUR/USD Forex market gapped 1.4 percent higher at the open of the Asian and Pacific Rim trading hours. Exit polls, in the French election for president, show that centrist Emmanuel Macron and far-right candidate Marine Le Pen advanced to the second round to be held on May 7. Macron is on pace to finish in the lead. This is reinforcing optimism about his ability to defeat Le Pen in the runoff next month.
The financial markets are still showing tension after these results as polling data is not showing a clear victor as candidates are clustered around 20 percent. This means voters had to decide between two euro-skeptics. On the far left is Jean-Luc Melechon and on the far-right is Le Pen. This is making investors uneasy.
Euro Gaps higher on Hope
Looking at the above 15 minute MT 4 chart, you can see the euro gapping 1.4 percent higher this morning before settling down. After the polls came in some of market tension was diffused. Here is the narrative from the evening, following the results.
Center-right candidate Francois Fillon conceded defeat. Fillon then urged his supporters to rally behind Macron for the second round. He called Le Pen’s National Front a party not a reasonable choice for France. He stated that they are known for “violence and intolerance.” Center-left candidate Benoit Hamon then followed suit.
