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Tuesday, July 23, 2024

EUR/USD Higher After First Round of France’s Election

The first round of France’s unexpected snap election has concluded with the far-right National Rally (RN) party, led by Marine Le Pen, emerging as the frontrunner. However, the final outcome remains uncertain, as it will depend on how parties form alliances in each of the country’s 577 constituencies for the second round of voting.

EUR/USD Technical Analysis:

EUR/USD is currently in a downtrend but looks to be losing momentum. Based on the current news and uncertainty it’s unclear where it could possibly lead. However, if it breaks above 1.07615 we could see further upside potential, with targets around 1.082. It will be interesting to see how the price will react next week based on the election results.

Key Takeaways From France:

  1. The euro saw a slight increase as trading opened in Asia-Pacific.
  2. One poll suggested the RN could potentially win an absolute majority.
  3. The election has caused market unease due to spending increase pledges by both the far-right and the second-place leftwing alliance.
  4. Investors are concerned about France’s already high budget deficit.
  5. The premium on French government bonds over German bonds has reached its highest level since the 2012 eurozone debt crisis.
  6. French bank stocks have seen significant drops, leading to losses in the Paris CAC 40 stock index.
  7. The final outcome will be determined by the second round of voting next Sunday.
Lazarus Lucas is the Publisher, editor, and creator of LJLNews. Stock Market enthusiast, with an interest for politics. Independent trader, analyst, and asset manager. Lazarus publishes articles on LJLNews with technical analysis on various markets, such as currencies, stocks, and commodities. Contact: Lazaruslucas@ljlnews.com

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