Euro climbs following first-round election vote in France
The National Rally (RN) party by Marine Le Pen won the first round of the parliamentary elections, but with a smaller share of the vote than some polls had predicted. This development came as a relief to markets concerned about potential expansionary and unsustainable fiscal policies from a stronger far-right presence.
This result led to a modest rise in the euro, with EURUSD trading at $1.0737, up 0.24%, after touching a one-week high of $1.0749 earlier in the session. The underperformance of RN reduced fears of aggressive fiscal policy, thereby supporting the euro.
Read more to find out what will happen to EURUSD.
Disclaimer:
The trajectory of inflation and economic data through the summer will be crucial in determining the likelihood of a Federal Reserve rate cut in September. Caution is advised while the markets are trading in an optimistic state.
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