Weekly Market Outlook | 21.04.2017

Are investors ready for French election?

After weeks of waiting, the market will have a better idea who will become the next French President. The first result will be available on Sunday evening. Volatility is expected on Monday morning in the FX market, especially should none of the two pro-business make it to the second round. In the UK, the announcement of snap election in June has triggered a rally in the pound sterling, which rose more than 2% against the greenback, as investors believed it would strengthen the government to negotiate the terms of Brexit. In the US, the dollar debasement accelerated as inflation expectations moved south as investors unwind the reflation trade.