As noted earlier, following Macron's victory the reaction in key FX crosses and pairs has been very subdued, suggesting today's outcome was no surprise to traders at least in terms of technical positioning. Another reason why "the news may be getting sold" is that as Deutsche Bank and various other sellsiders suggested, another near-term hurdle looms in just a few weeks time with the French parliamentary elections.
Aphoristic as usual, below we share some excerpts from the latest weekly letter to clients by Eric Peters, CIO of One River Asset Management, in which he discusses walls of worry, the real un-risk out of Europe, desperate oil investors, and North Korean geopolitics.
Emmanuel Macron has won the presidency of France, and markets can heave a sigh of relief. The key question for traders is what comes next.
As Bloomberg's Cameron Crise notes, markets have cheered Macron’s victory not for who he is, but rather because of who he is not. That is a fairly slender thread on which to hang a case for a secular reversal in the euro.
Live Feed from France 24:
Authored by Mike Shedlock via MishTalk.com,
EC vs EC
Donald Tusk, president of the European Council went after Jean-Claude Juncker, president of the European Commission for Juncker’s leak of his dinner meeting with UK prime minister Theresa May.
Following ill-fated dinner meeting, Juncker phoned Angela Merkel “Theresa May Lives in a Different Galaxy”. Someone, presumably Juncker’s chief of staff, Martin Selmayr, leaked the results of the dinner meeting and Juncker’s phone call to the German press.