French President Emmanuel
Macron called a snap election on Sunday. His decision came after Marine Le Pen’s far-right National Rally party polled very strongly in European elections held on Sudnay.
- Le Pen made the largest gains in European
Parliament elections - Greens and
liberals lost ground - Macron has announced that he is dissolving the national assembly
- Has called legislative elections on June 30 and July 7
EUR/USD is a touch lower on the political uncertainty. I’m no PhD in French politics but I will say that the results in EU elections do not, never do, translate directly into domestic election results. Domestic elections have a different election system, and the higher levels of ‘protest votes’ do not occur in domestic elections to the same extent.
But this does appear to leave Macron further away from a majority
in parliament than he had up until now. This is likely to increase periods of stalemate in the French parliament and increase uncertainty in EU politics, economics, and markets.