dollar ECB euro europe FX le pen populism

Daily Kickstart (French Kiss)

"Let's make it a bad souvenir"...

On Sunday evening in "Currency Markets In Turmoil: A Pocket Guide For The Week Ahead," I flagged some rather alarming commentary from Marine Le Pen, the French incarnation of Donald Trump. "Let's make it a bad souvenir," she said of France's euro membership. Well unsurprisingly, markets aren't liking that. "Caution crept through European bonds and currencies after prospective French presidential candidate Marine Le Pen unveiled a manifesto pledge to take her country out of the euro, underscoring political risk in the world’s biggest single market," Bloomberg wrote on Monday morning. Indeed, the spread between French and German 10s blew out to its widest level since 2013: (Bloomberg) Le Pen's rhetoric on Sunday was combative to say the least. She even suggested that if European leaders didn't "bow" at her feet, she'd called a referendum on EU membership. As you can see from the following chart, the spread between French and German yields has ebbed and flowed with the fortunes of the now beleaguered Francois Fillon: (Nordea) "The euro could fall ~10% to about 0.98 versus dollar over a few weeks on a Le Pen v
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1 comment on “Daily Kickstart (French Kiss)

  1. romanpirate says:

    That spread….. D:

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