Markets Franc appreciates only minimally against the euro after French elections

The euro initially barely reacted to the result of the French election. The shift to the right in the neighboring country was weaker than expected. Prior to this, the euro had risen significantly, partly due to initial signs of a slowdown on the US labor market.

The euro is currently trading at 0.9699 francs. This is only slightly lower than on Friday evening, when the single currency was still trading at 0.9712 francs. At 0.8953 francs, the US dollar has weakened somewhat more significantly.

In France, contrary to expectations, the left-wing alliance won the most seats. The Rassemblement National on the right, the clear winners of the first round, ended up in third place behind President Emmanuel Macron's alliance.

"Turn right, turn left", commented market strategists on the election result in France with a slightly ironic undertone. From today's perspective, however, the election result is "largely irrelevant" for the valuation of the euro. Especially as a majority capable of governing is not yet in sight and the left lacks a common leadership.

SDA