French election 2017: Emmanuel Macron wins presidency and vows to restore France’s confidence

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Macron’s victory speech

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The euro has hit a six-month high against the US dollar as financial traders react to the French election results.

The single currency rose to $1.102 in early trading, its strongest position since the US elections last November.

Investors are relieved that Emmanuel Macron’s victory removes question marks over France’s membership of the EU, and the single currency. But it’s a fairly modest rise, as Macron’s victory was largely ‘priced-in’.

The euro vs the US dollar over the last six months
The euro vs the US dollar over the last six months Photograph: Thomson Reuters

The euro has also hit a one-year high against the yen – a sign of relief that Macron secured such a big win over Marine Le Pen. It’s up 0.3% against the pound too, to 84.9p.

Michiel de Bruin, head of global rates and money markets at BMO Global Asset Management, comments:

“This win sends a clear signal that anti-EU populist parties are unable to secure a power base across the political landscape in continental Europe. This started with the presidential elections in Austria in December 2016, with a win by the Pro-European Alexander Van der Bellen, followed by the Dutch elections last March where centrist pro-European parties won the elections.

Now this trend has been echoed in France with a win by Emmanuel Macron, who has been campaigning on a pro-European agenda.”

Timothy Graf, head of macro strategy at State Street Global Markets, predicts that markets can now relax about European politics. But possibly not for long.

Graf says:

We expect the focus to now shift to how successful Macron’s political movement, and new party, En Marche!, will poll ahead of June’s parliamentary elections, and how strong a coalition of support he can expect as the leader of what is likely to be a minority party.”

Updated

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Macron delivers solemn victory speech

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