Macron is making the speculators happy

The European stock exchanges are growing to the twenty-month high. They are being helped by the recent television duel of candidates for the French presidency.

The duel – at least as many are claiming – “won” E. Macron. The conviction that Macron is going to win the election is reflecting also in the bond market where there is actually the lowest difference of yields of French and German bonds in a plenty of months. That’s why the dollar erased its previous profits.

It is clearly showing that what is going to influence the financial markets in following days is going to be the French election. It’s counting on Macron’s victory. If it comes true it won’t influence the market much. But the bigger commotion would set in if the polls were wrong just like they were about BREXIT and Le Pen would win. Then sharp depreciation of the euro would come (appreciation of the dollar) by several percent, fall of the European stocks and also of the French bonds.