The confidence vote is set to take place later this afternoon with the results expected with the results likely to come in around 1500 GMT or after that. Incumbent French prime minister Bayrou is set to be ousted but are markets underestimating the political turmoil that could follow? Well, let's take a look.
For the most part, the euro currency has shrugged off the risks associated with the situation in the region's second largest economy. So, that's one clear spot to look at in terms of potential negative reactions from markets. That at least is what Societe Generale is arguing.
The firm outlines that the most probable outcomes are either Bayrou loses the vote and a caretaker prime minister is appointed or that Bayrou loses and the National Assembly is dissolved. And that will lead to an election with the likeliest result being another hung parliament.
They outline that if the general election leads to a hung parliament and/or a National Rally win, that would cause "significant political and fiscal risks". In turn, that will be the most negative outcome for the euro.
But in the case of any other outcome (even in the confidence vote), any positives will be limited and could be slightly negative at the balance. Societe Generale is noting that the market is being complacent right now and that the probability-weighted outcome for EUR/USD implies a target of 1.1570
This article was written by Justin Low at investinglive.com.Hence then, the article about heads up french prime minister bayrou set to face confidence vote later was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Heads up: French prime minister Bayrou set to face confidence vote later )
Also on site :
- Police respond to incident at property in Dudley as residents 'spot armed police' in street
- Sinkhole on East Franklin Street Closes Lanes; Chapel Hill Urges for Detours
- ‘HARRY STYLES IS ACTUALLY BACK’: Here’s Why Fans Think the Star Is About to Release New Music