The euro has slipped back from a 6 month high after Macron's decisive French election victory

LONDON — The euro is little moved on Monday morning after centre-left Emmanuel Macron swept to a decisive victory in the second round of the French presidential election.

Macron, the 39-year-old pro-EU candidate, defeated Marine Le Pen, a far-right nationalist who called for France to exit the European Union, by a margin of more than 31 points, winning 66.06%. That margin was even bigger than the margin polls had forecast in the days leading up to the vote.

A final poll on Friday, for example, put Macron on 63% of the vote.

The euro had rallied after the first round of voting late in April, but has remained relatively calm since it became clear on Sunday evening that Macron was victorious. That is largely down to the fact that markets were virtually certain of a Macron victory, and had priced it in accordingly.

After jumping a little on initial news of his victory, passing above 1.10 against the dollar for the first time since Donald Trump’s election victory in November, the euro has actually dipped a little. As of 6.45 a.m. BST (1.45 a.m. ET) the single currency is off by close to 0.1% to trade at $US1.0989.

Here is the chart:

While the euro’s reaction is muted, Macron’s victory will be cheered by investors across the continent. Given Macron’s pro-EU stance, his victory has likely assuaged many fears in the markets about the potential for a French exit from the European Union, something favoured by Le Pen.

Overall, this is a good result from the point of view of EU cohesion. Mr. Macron and Ms. Merkel, or Christian Schultz, will form a strong axis, painting the contours of a structurally bullish story for growth in the Eurozone,” Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics wrote in an email overnight.

“But the firm support for Marine Le Pen, and other anti-EU parties, in Europe show that not everyone is happy with the EU.”

See the latest EUR-USD movements here.

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