By ForexTime
- France’s Left-Wing coalition bags surprise victory
- No outright majority means hung parliament outcome
- FRA40 bounces from 200-day SMA
- Key levels of interest – 7790, 7700 & 200-day SMA
FXTM’s FRA40 moved higher on Monday as markets digested the unexpected result of France’s legislative election.
The left-wing coalition won the largest amount of seats but could not secure a majority – resulting in a hung parliament outcome.
- New Popular Front (left-wing): 188 seats
- Macron’s centrist alliance (centrist): 161 seats
- National Rally (far-right): 142 seats
Note: 289 seats are needed for absolute majority
With no party close to securing a majority, this could spell months of turmoil and political instability.
But this also means that neither the left nor right party can implement their plans into action, without support from others to pass legislation. This could cool fears around more spending and deeper deficits at a period where France remains under the European Union’s scrutiny for breaking budget rules.
Looking at the charts, the FRA40 bounced from the 200-day SMA on Monday morning with prices trading above 7700 as of writing. Despite the political gridlock down the road, the overall market reaction seems positive.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
- Still, bulls will need to secure a solid daily close above 7700 to encourage an incline toward 7790 and the 50-day SMA at 7900.
- Should 7700 prove to be a tough resistance, a decline back toward 7470 and 7400 could be on the cards.
Note: FRA40 tracks the underlying CAC 40 Index
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
- Bitcoin has reached the $70,000 mark. The Canadian dollar fell to last year’s lows Oct 29, 2024
- Brent Crude Oil Experiences Sharp Price Decline Oct 29, 2024
- EUR/USD Weakens Amid Global Economic Uncertainty and Strong US Dollar Oct 28, 2024
- Oil, Yen tumble after weekend turmoil Oct 28, 2024
- Bank of England may delay rate cut. Inflation in Tokyo continues to decline Oct 25, 2024
- NZD/USD Hits Four-Week Low Amid US Dollar Strength Oct 25, 2024
- The Bank of Canada cut the rate by 0.5%. Stock indices under selling pressure ahead of US elections Oct 24, 2024
- EUR/USD Dips to Three-Month Low Amid Strong Dollar Demand Oct 24, 2024
- USD/JPY Climbs to Three-Month Peak Amid US Dollar Strength Oct 23, 2024
- The rise in the Dollar Index is putting pressure on stock indices. MXN rate fell to a 6-week low Oct 22, 2024