French Elections to sway Euro's direction in April'17: Angel Broking

Monthly Report on Currency by Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Broking):

"The four hour French presidential debate was a cue to the market literates that majority of the candidates were Euroskeptic. This information has infused fear in the already crisis hit markets; thanks to the Syrian attack, possible US policy tightening, Brexit negotiations, Chinese economy slowdown etc which has pushed the Euro currency lower. Moreover, the recent election polls show that the gap between the candidates was narrowing. It's a sure thing that the French Election (23rd April'17) is not going to be a blink and miss event.

Other factor that can't be ignored is the Brexit negotiations. On 28th March'17, the British Prime Minister announced her intentions of formally starting the two-year European Union withdrawal process. With so little clarity on the kind of deal Britain really wants, many consider the trigger to be a shot in the dark. Investors avoid making any risky trades as the unpredictable political risk is currently on the driver's seat, giving directions to the Pound. Hence any unusual news on the political front will influence the trend of the Sterling Pound."

Source : Equity Bulls

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