After months of campaigning, the French will elect this Sunday, as their future president of the Republic. Emmanuel Macron, and Marine Le Pen are competing for this second round. Currently, it seems that the first has a comfortable lead on the second (60% VS 40%).
This type of event is relatively exceptional that is why it tends to have a significant impact on the foreign exchange market. To optimize it, here are a few tips.
Prepare for exceptional circumstances
A few days ago, the euro was performance mixed even if the two protagonists of the second round were expected at this level.
With the reaction of the pound and the USD on the foreign exchange market after the referendum on keeping Britain in the EU and the us elections, it is better to wait for exceptional circumstances.
This involves preparing peak potential of volatility, movements of several hundreds of pips, to anticipate possible reversals and profit taking. In other words, it is necessary to provide a number of strategies to confront any situation.
The pairs of the euro could be affected by other catalysts
If the French elections are the catalyst for the most important of these last days on the forex, it is not the only one who will affect the major pairs of the euro.
The report NPA us could strengthen or break the recent optimism from the fed on its economy ; Theresa May, has made headlines this week after he accused european leaders of wanting to derail the negotiations for a brexit.
Consider staying on the sidelines
We repeat regularly, if volatility is not your cup of tea, there is nothing wrong to stay on the sidelines and observe the place of events and their impact on currencies forex. A strength of observation, you may wish to join part in the hostilities the next time !
Voila, you’re now ready to face this unique weekend. Good trading to all.