The Euro is weakening across a range of EUR-pairs in early trade after this weekend’s European elections saw a marked shift to the right. After being heavily defeated by Marine Le Pen’s National Party, French President Emmanuel Macron called a snap election, while in Germany Chancellor Olaf Scholz saw his Social Democrat Party beaten by the far-right Alternative for Germany (AFG) party. France will go to the polls on June 30th, while Chancellor Scholz is now under pressure also to call an election.
The renewed political uncertainty can be seen across a range of assets Monday, with the French CAC 40 currently trading over 1.7% lower, while the Euro is weak against a range of currencies. The CAC 40 is trading at a fresh multi-month low after breaking support around the 7,900 level. The next zone of support is seen between 7,703 and 7,658.
CAC 40 Daily Chart
Recent changes in sentiment warn that the current France 40 price trend may soon reverse lower despite the fact traders remain net short.
EUR/USD fell through all three simple moving averages and prior horizontal support in early trade before finding stability around 1.0750. The next level of support is seen just below 1.0700.
EUR/USD Daily Price Chart
