{"id":13763,"date":"2024-07-01T12:06:02","date_gmt":"2024-07-01T12:06:02","guid":{"rendered":"https:\/\/www.vtmarkets.net\/?p=13763"},"modified":"2025-03-06T06:58:19","modified_gmt":"2025-03-06T06:58:19","slug":"forex-market-analysis-market-reacts-to-french-election-results","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/13763\/","title":{"rendered":"Forex Market Analysis: Market Reacts to French Election Results"},"content":{"rendered":"\n<h1 class=\"wp-block-heading has-medium-font-size\">CURRENCIES<\/h1>\n\n\n\n<p><strong>French election outcomes:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The right-wing National Rally (NR) party secured nearly 34% of the vote.<\/li>\n\n\n\n<li>The left-wing New Popular Front garnered just over 28%.<\/li>\n\n\n\n<li>President Macron\u2019s alliance came third with around 21%.<\/li>\n\n\n\n<li>NR is close to the 289 seats needed to form a government but is projected to fall short by about 10 seats in the second round.<\/li>\n<\/ul>\n\n\n\n<p><strong>Market response:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Both the Euro and CAC 40 started the week strong.<\/li>\n\n\n\n<li>CAC 40 rose by 2.5%, now at 7,685, yet still below the May 10th peak of 8,262.<\/li>\n\n\n\n<li>The Euro increased, but further gains may be limited before next week&#8217;s elections.<\/li>\n\n\n\n<li>EUR\/USD is trading around 1.0765, near a three-week high.<\/li>\n<\/ul>\n\n\n\n<p><strong>Market conditions:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Anticipated tactical voting in France could heighten CAC 40 volatility.<\/li>\n\n\n\n<li>Important upcoming US data, particularly Friday\u2019s US Jobs Report (NFP), will impact EUR\/USD movements.<\/li>\n<\/ul>\n\n\n\n<p><strong>Trader sentiment:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Retail trader data indicates 50.39% of traders are net-long.<\/li>\n\n\n\n<li>The ratio of long to short traders is 1.02 to 1.<\/li>\n\n\n\n<li>The number of net-long traders decreased by 10.75% since yesterday and 25.08% since last week.<\/li>\n\n\n\n<li>Net-short traders increased by 21.60% since yesterday and 30.87% since last week.<\/li>\n\n\n\n<li>A contrarian view suggests EUR\/USD might fall, but recent sentiment shifts hint at a potential upward reversal despite current net-long positions.<\/li>\n<\/ul>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\">STOCK MARKET<\/h1>\n\n\n\n<p><strong>Market reaction:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>European stocks and the euro surged on speculation that Marine Le Pen\u2019s far-right party will struggle to secure an outright majority in the French elections, reducing investor concerns about a radical policy shift in France.<\/li>\n<\/ul>\n\n\n\n<p><strong>Election impact:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>France\u2019s CAC 40 Index jumped 2.8%, the largest gain since November 2022, as Le Pen\u2019s National Rally led President Macron\u2019s centrist alliance by a smaller margin than expected.<\/li>\n\n\n\n<li>The Euro reached its strongest level since mid-June.<\/li>\n\n\n\n<li>The yield spread between French 10-year bonds and German bonds narrowed, indicating reduced risk perceptions.<\/li>\n<\/ul>\n\n\n\n<p><strong>Market performance:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Europe\u2019s Stoxx 600 Index rose by 1%, with banking stocks leading the gains.<\/li>\n\n\n\n<li>Societe Generale SA, BNP Paribas SA, and Credit Agricole SA surged over 5%.<\/li>\n\n\n\n<li>US equity futures trimmed earlier gains.<\/li>\n<\/ul>\n\n\n\n<p><strong>Market sentiment:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investors showed relief as neither far-right nor far-left parties are expected to implement extreme policies.<\/li>\n<\/ul>\n\n\n\n<p><strong>Corporate news:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Boeing Co. agreed to buy back Spirit AeroSystems Holdings Inc. for $37.25 per share in an all-stock deal.<\/li>\n\n\n\n<li>The US Justice Department will charge Boeing with criminal fraud.<\/li>\n<\/ul>\n\n\n\n<p><strong>US economic data:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indicators suggest the US economy is cooling without lasting consumer damage.<\/li>\n\n\n\n<li>US consumer sentiment declined less than expected, with inflationary pressures predicted to moderate.<\/li>\n\n\n\n<li>Treasury 10-year notes showed little change.<\/li>\n<\/ul>\n\n\n\n<p><strong>Global market dynamics:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The South African rand led gains among emerging market currencies after President Cyril Ramaphosa announced a new business-friendly cabinet.<\/li>\n\n\n\n<li>Oil prices edged higher amidst economic and geopolitical assessments.<\/li>\n\n\n\n<li>Iron ore prices rose on signs of recovery in China\u2019s property market and potential further support from Beijing.<\/li>\n<\/ul>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/\" title=\"\">here<\/a> to open account and start trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CURRENCIES French election outcomes: Market response: Market conditions: Trader sentiment: STOCK MARKET Market reaction: Election impact: Market performance: Market sentiment: Corporate news: US economic data: Global market dynamics: Click here to open account and start trading.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-13763","post","type-post","status-publish","format-standard","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"luna","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/luna\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/13763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=13763"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/13763\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=13763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=13763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=13763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}