Analysts wary on the EUR in the wake of the French election

The left wing New Popular Front coalition is projected to have won the most seats in France’s National Assembly after the election over the weekend.

CBA analysts are wary that the parties in the coalition want a big increase in spending, adding to France’s already large budget deficit and deb. Also wary of how a governing coalition is going to be formed, with no one party in majority the could be instability ahead.

TD note similar concerns:

• ineffective government
• risks of a rising debt profile

Both sets of analysts are looking for the event to weigh on the EUR.

Update:

This article was written by Eamonn Sheridan at www.forexlive.com.