Analyst: French parliament will be in a legislative vacuum state

FXStreet 8th July, Golden Data: French election forecasts show the far right may only gain third place. Analysts say the market may breathe a sigh of relief. However, investors are also concerned that the plans of the French left-wing alliance may cancel many of President Emmanuel Macron’s pro-market reforms. They believe that the political deadlock could thwart efforts to control France’s debt. MonexEurope’s forex analysis chief, Simon Harvey, said: “It looks like the far-right party has indeed gained a lot of support. But fundamentally, from a market perspective, the results are not much different. When it comes to France’s legislative ability, there could really be a vacuum.” Harvey added: “The bond market will be the real place worth following. French bonds (prices) may have room to fall.”