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The Euro surges after round one of the French presidential campaign

Emmanuel Macron ahead of controversial candidate, Marine Le Pen

The Euro has made huge gains in Asia after the polls closed in the first round of the French presidential election. 

 

The predicted strong showing of National Front leader, Marine Le Pen, and far-left candidate, Jean-Luc Mélenchon left many Euro traders and holders of European assets concerned. Ms Le Pen has pledged that, if elected, she would engineer France's departure from the single currency. Le Pen has also hinted that France may follow Britain's lead and leave the European Union. 

 

With France currently boasting the second-largest economy in the European Union, many in Brussels believe that, in the wake of Brexit, losing France would make the euro-bloc unsustainable. 

 

Despite Mr Macron going into the election ahead in most polls, Le Pen was expected to win the first round of voting, seeing the pair go head-to-head in the second round next month. The concern amongst Euro traders was that a first round win would give Le Pen and her National Front party the momentum and recognition required to cause a Trump-like shock in the presidential election. After all, US President Donald Trump remained behind Hilary Clinton throughout the majority of their campaign. 

 

Centrist candidate, Macron won the first round with 23.9% of the votes, compared to Ms Le Pen's 21.4%. Conservative, François Fillon finished third with 19.9% of the vote and Mr Mélenchon scored 19.5% of the vote to finish in fourth. 

 

The result saw the Euro rise 1.9% against the Dollar. The Euro reached $1.0935 - its highest level since November. Against the Yen, the Euro surged to 120.82, up 3.3%. 

 

Vincent Juvyns, a strategist at JP Morgan Asset Management, said "This is the most market-friendly outcome. A Macron-Le Pen contest in the second round should give Macron a significant majority." 

 

The second round of voting between Emmanuel Macron and Marine Le Pen will take place on May 7th. Predict the outcome of the vote and the impact this will have on global currencies and start trading using any of the Spread Betting partners.

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