Emmanuel Macron () is at the top in the first round of the presidential election French of 2017 with 23,29 % of the votes, Marine Le Pen (national Front) came second with up 22.65 % of the votes. The presidential candidate François Fillon (LR) is placed third with 19,71% of the vote, Jean-Luc Mélenchon (France insubordinate) hooking with 19,07 % of the vote. Then comes Benoît Hamon (socialist Party) who harvested 6,11% of the vote. The other candidates are Nicolas Dupont-Aignan, Jean Lassalle, Philippe Poutou, François Asselineau, Nathalie Arthaud and Jacques Cheminade account respectively 4.98%, 1.29% 1.14% 0.90% 0.68% and 0.18% of the voice. This first round of the presidential elections has not been without impact for the financial markets, as we will demonstrate below.
The EUR/USD is the currency pair the most processed on the Forex market and it is therefore the instrument based on the euro which records the highest volumes of transactions. This instrument is a very active market between the us dollar and the european, we could therefore expect that it is not insensitive to the French presidential election and the first round of votes. While the EUR/USD closed last Friday at 1.0706$, the opening was made just after the elections during 1.0864$, that is, a gap of the order of 158 pips !
It is the stock market index French, we should therefore also expect a reaction of the CAC40 allaiit occur to the announcement of the two candidates qualified to the second round of the presidential election. The index closed the previous Friday the result of the first round to 5.088 points, to open post first round at 5.237 points, an increase of the index of the order of 149 points , or 2.93 per cent.
The DAX30 (or GER30) is the German stock index, the main european economy, one could therefore also assume that a reaction of investors on this market was going to take place and it was not of the least ! There is in fact another gap to the upside on this index, of the order of 196 points (closing at 12.075 points, opening brute 12.271 points).
The short-term effect on these financial markets was a possibility and we discussed in our article “The impact of the presidential election in 2017 on the financial markets” which was published two days before the first round of the elections. A similar reaction should take place at the occasion of the second round and we will keep you informed on the blog, prior to the event.
What do you think of this first round ? Have you personally benefited (or not) on the financial markets ? How will you prepare for the second round on the trading platform of your forex broker ? 🙂