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.
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.
After the quietest 8 days in S&P history since 1964...
The broad market index managed to limp quietly to a new record close on Friday after a very mixed payrolls print.
However, despite the volumeless spike to record highs, it appears the week's dismal data..
As Bloomberg notes, to say the S&P 500 Index’s slog to a record this week failed to ignite animal spirits on Wall Street would be an understatement.
Live Feed from France 24:
On Friday morning, in the aftermath of Trump's surprising victory forcing the GOP Healthcare bill repealing Obamacare through the House, we noted that Goldman's DC analyst Alec Phillips responded that, somewhat paradoxically, the impact on Trump's broader economic agenda would actually be more adverse than most economist and pundits expected, stating that "the main effect of House passage is to delay the consideration of tax legislation, which looks even more likely than before to be delayed until 2018."