Global Economy News

The shock of the French election caused the euro to fall

According to Tasnim news agency, quoted by Euronews, the unexpected victory of the left-wing coalition “New Popular Front” in the French elections caused the euro to fall, as the markets' concern about excessive spending has increased.

The euro fell 0.3 percent in early Asian trading after France's New Popular Front party won the country's parliamentary election.

The latest estimates on Monday morning indicated that the coalition had won 182 of the 577 seats in the French National Assembly.

Meanwhile, the centrist coalition of current president Emmanuel Macron, known as “Ensemble”, is set to capture 168 seats. The result of the election was a humiliating defeat for this coalition and prompted the resignation of Gabriel Atal as Prime Minister.

Although markets have recently seen gains on the belief that the far-right National Assembly is unlikely to win an absolute majority, market uncertainty appears to be returning.

According to the report, the far-right party is expected to win just 143 seats after Sunday's vote, although investors are now worried about new faces.

Reuters quoted Simon Harvey, head of forex market analysis at Monex Europe, as saying: “The anti-far-right parties really seem to have a lot of support.

According to the report, markets hate uncertainty and the French political scene is currently far from stable.

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Mhd Narayan

Bringing over 8 years of expertise in digital marketing, I serve as a news editor dedicated to delivering compelling and informative content. As a seasoned content creator, my goal is to produce engaging news articles that resonate with diverse audiences.

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