presidential election

Macron won the French presidential elections against Marine Le Pen. Now comes the hard part.

With the French election now finally in the rearview mirror, this week's focus is on global inflation releases, with the spotlight falling on the US and China, as well as retail sales in the US. We also have BoE and RBNZ rates meetings. In other data we note industrial production in the Eurozone, UK and Norway along with US retail sales and Fed speakers.

Key developed market events

Two words - "priced in."

Despite what Hillary Clinton proclaimed "a victory for the world"...

Victory for Macron, for France, the EU, & the world.

Defeat to those interfering w/democracy. (But the media says I can't talk about that)

— Hillary Clinton (@HillaryClinton) May 7, 2017

Macron's win in the French presidential election has left capital markets with a whole lot of nothing...

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.