Euro firms up notably against Swiss Franc in Asian session today. Official projections of European elections showed that efforts from anti parties are failing in the elections. And after the elections, policies of EU will remain largely unchanged.
That is, within the bloc, there will be further gradual integration, in particular in Eurozone. Externally, EU will continue to defend multilateral, rule-based global trade system and reject protectionism of the US. Also, there will be no renegotiation of Brexit Withdrawal agreement.
The two large alliances of central-right and center-left lost ground and could only make up 44% of the seats. That’s down from 56% back in 2014. However, pro-business Liberals and the Greens and had a clear surge to 14% and 9% respectively, up from 9% and 7%. That is, together, these pro-EU groups will have around 67% of seat, enough for outright majority, even though it’s down from around 72% in 2014.
Technically, we’re seeing the fall from 1.1476 as a corrective move only. Thus, while it’s deep, we do not expect a break of 1.1162 low. Rebound should be due considering bullish convergence condition in 4 hour MACD. But Decisive break 1.1162 will carry larger bearish implications.
