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Pound V euro: GBP strengthens against EUR after Macron French election victory

19 Mai 2017

Here are five things to know about French president-elect Emmanuel Macron.

FRANCE: The French CAC 40 fell 0.9 percent on Monday, but that followed a 7.4 percent surge in the previous two weeks.

The shared currency EURUSD, -0.3546% traded at $1.0960, down from $1.0999 late Friday in NY.

In market parlance, it's a clear case of buying the rumor and selling the fact. The so-called Penelope- gate affair, which involved alleged fictitious employment associated with Republican right-wing candidate Francois Fillon, they say, played into his hands, and Macron did not hesitate to use it in statements on TV and elsewhere, condemning politicians who employ their relatives.

Vincenzo Scarpetta, analyst at Open Europe, warned Macron may be biting off more than he can chew.

After his victory, Mr Macron urged the French to embrace rather than reject globalisation and vowed to work with Germany to relaunch the European Union - a body that has been struggling to find its relevance after years of crisis and scepticism among many Europeans.

Mr Macron is putting together his list of candidates for the legislative elections - a task he has complicated by pledging absolute gender parity and promising that half his candidates will come from outside political circles.

Hamon went on to make a disastrous showing in the presidential election, being eliminated in the first round in fifth place.

Le Pen had hoped to capitalise on the disillusionment of voters in France and ride a populist wave to the country's highest office.

In The Netherlands, Dutch far-right leader Geert Wilders commiserated with Le Pen, saying in a tweet: "Well done anyway @MLP_officiel millions of patriots voted for you!" The election of a French president who champions European unity could also strengthen the EU's hand in its complex divorce proceedings with Britain.

"I was never fascinated by power", she said in a recent interview on state-run TV.

This accelerated procedure, bypassing parliament, could mean a fiery start to his term as France's highly activist unions would likely bring protests out onto the streets, as they did a year ago when Socialist Prime Minister Manuel Valls used the tactic.

Macron doesn't come from a major political party.

The movement will be renamed as "La Republique En Marche" on July 15.

Many left-wing supporters felt they could not support Macron because of his pro-business attitudes and policies.

Macron now becomes not only France's youngest-ever president, but also one of its most unlikely.

"There is a very material risk that a period of cohabitation during a Macron presidency could prevent France from implementing policies that would address its growth and fiscal challenges", said Sarah Carlson, senior vice president at credit ratings agency Moody's Investors Service.

Had she won, she says she would have immediately worked to pull France out of the European Union and North Atlantic Treaty Organisation and put French francs back in the pockets of the French who now shop with the euro currency.

A graduate of elite National School of Administration, which boasts three French presidents among its alumni, Macron worked as a financial inspector at the economy ministry after graduating before joining Rothschild & Cie bank as an investment banker.

Pound V euro: GBP strengthens against EUR after Macron French election victory