Ramifications of the first round of French elections - CIBC

Macron and Le Pen are heading to runoff with the latest polls showing Macron in the lead with 62% support. What does it mean for the EUR pairs and markets in general?

The EUR pairs have rallied this Monday morning. Jeremy Stretch, Head of G-10 FX at CIBC says Macron-Le Pen outcome provides scope for Draghi and Co to focus more on the underlying fundamentals. Does it mean the ECB will bring forward the Taper and talk up rate hike bets?

If so, is the EUR poised for a sharp rally? Stretch says it is still too early to say so as Macron victory does not guarantee reforms as he still needs to secure a parliamentary majority.

Find answers to your most pressing questions related to French elections and the FX markets, UK general election and the next move in the British Pound.

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