EU politics – French President Macron has called a snap election. EUR/USD a touch lower.

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.

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