European Union Remains Intact As Pro EU Candidate Macron Wins Presidency
A huge victory for pro-Europeans and pollsters; as expected Emmanuel Macron the centrist candidate was able to fight off the far right candidate Marine Le Pen. Although the far right populist political movement isn’t going away soon across Europe, this is a heavy blow for the anti EU agenda.
If you're looking to make an international money transfer, we recommend TorFX.
The Euro gained across the board overnight reflecting the renewed assurance in the EU from many investors. However due to the market already factoring in a Macron win only a 0.4% gain by the Euro against a basket of currencies.
The 11th and the 18th of June will be the next round of voting for French citizens, this time to vote on parliament. Currently holding no parliamentary seats, Macron is expected to win around 270; he has yet to form any alliances with other parties but if he does not gain a majority in the house he will be forced to find friends within parliament which may hinder his process in the next four years of governing.
A Defining moment for the EU nonetheless and if other European countries follow suit over the coming months the Euro might start to see a turnaround from the long term downtrend it has experienced over the last 6 months.
AUD Slump Continues, RBA Chairman Positive on The Australian Economy
April 17 was the day the ‘Aussie’ began to fall, and it hasn’t really stopped since. Against the EUR and GBP it was at 0.71334 and 0.6040 respectively and now it sits at 0.6743 and 0.5711 respectively. These steady losses are not confined to just these two pairings either with the AUD dropping across the board on the back of weak economic data from China and an outbreak of poor figures from the Australian
Building approvals and NAB Business Confidence data will be released at 11:30 this morning; forecasted to be substantially less than last month’s figures this has the potential to further weaken the struggling AUD.
Tomorrow monthly Retail Sales figures are out in the am then the Governments annual budget release at 7:30pm. All eyes look to the budget as Prime Minister Malcolm Turnbull seems to have changed his tone over the last week from tight fiscal policy measures to a national infrastructure project, much like President Trump’s pledge for the US.
If tightening the budget is no longer a primary objective by the Turnbull government, Australia’s credit rating will again be at significant risk for a downgrade and the AUD may suffer further.
The AUD is currently trading at 0.6741 against the EUR