FX.co ★ France to make stark choice: pro-EU Macron or euroskeptic Le Pen

The euro jumped sharply against other major currencies on Sunday. The single European currency received a boost from the outcome in the first round of the presidential election in France. In the runoff vote, centrist Emmanuel Macron will face off against far-right National Front leader Marine Le Pen. Analysts and polls view Macron as a clear favorite to win the second round.

The centrist candidate is committed to reinforcing France’s ties with the European Union. One of his election pledges aims to prolong sanctions against Russia. He is the mirror image of his rival Marine Le Pen on burning issues. Expressing pro-Russian stance, she advocates lifting sanctions and Crimea’s recognition as Russia’s entity. Interestingly, she even obtained a loan from a Russian bank. Besides, Le Pen has called for scrapping the euro and exiting from the EU. Therefore, the strong likelihood of Macron’s victory in the runoff has already provided the euro with solid support. After the announcement of preliminary poll results, the euro instantly surged to a five-month high against the US dollar. Importantly, market participants are closely monitoring developments in the fierce presidential race in France. Financial markets are alert even to interim results. Global trading floors responded with a relief rally to Macron’s win. US stock futures climbed 0.8%. Japan’s Nikkei shot over 1%. Now markets are anticipating May 7, the day when the world will find out the name of France’s new president.

Recently, experts have failed to make accurate forecasts. The UK shock vote to leave the European Union and Donald Trump’s victory in the US presidential election prove that life suggests its own scenario. In other words, there is no sure thing.