EUR/USD needs to regain levels above 1.10 to reduce risk of a slump to the 1.0650 zone – Westpac

French President Emmanuel Macron is ready to face off towards Marine Le Pen within the second spherical of the French presidential election this Sunday. A Macron election victory ought to be stabilising for the euro, however the EUR/USD pair must settle above 1.10 to alleviate draw back strain, economists at Westpac report.

A win for Le Pen could be an enormous shock

“A Macron victory ought to see Nationwide Meeting Election (ought to happen in Might or June) lead to one other majority, or a minimum of a workable minority, led by Macron’s La Republique en Marche.”

“A win for Le Pen could be an enormous shock, blowing open Nationwide Meeting voting and undermining EUR, however is now extremely unlikely after Wednesday’s leaders’ debate.”

“EUR must regain ranges above 1.10 to cut back threat of a slide to retest 2020’s spiked lows within the 1.0650 space.”