This Sunday, April 23rd, “La Grande Nation” will be electing their new president! Will it have a similar impact as that of the 2016 US election? AtoZForex.com contacted various brokers to inquire if they will take any risk management measures. What is the French election 24FX impact, will the broker raise margin requirements?
21 April, AtoZForex – The euro dropped today, slipping from its three week high, as the markets are preparing for the upcoming "La Grande Nation" election. According to some experts opinion, if Marine Le Pen wins this election, EURUSD could even drop to parity or below. The European financial markets are also facing big havoc after Theresa May calling for an early UK election.
Following on this, AtoZForex.com's team has been contacting and interviewing Forex brokers internationally, with the aim to get their view on the market ahead of the French election. Furthermore, we have received inquiries from our readers about the brokers' risk management precautions. Following up with 24FX, below I have summarized the key highlights of French election 24FX impact and risk management interview.
French election 24FX impact and risk management
Sabir Sheikh: "Is 24FX planning to raise margin requirements or have any leverage change?"
24FX's research team: "Experienced traders have the ability to choose a leverage for FX trading of either 50, 100 or 200. Inexperienced traders have only the choice between 50 and 100. Margin requirements are determined by lot size and leverage. There is no plan to raise such requirements in the near future."
Markets fear instability from right and left
Sabir Sheikh: "What is your research team’s projection and analysis for the major pairs on the upcoming elections?"
24FX's research team: "Sunday, April 23rd, “La Grande Nation” will elect a new president. The main issue for the market is the high degree of uncertainty, even more in the wake of last night’s terrible terror attack on Champs Elysee.
There is almost no doubt that French voters will eventually decide among four candidates (Macron, Le Pen, Fillon, Melenchon). Polls cited on Bloomberg predict each candidate receiving 18-25% of votes.
Markets are expected to react adversely to Le Pen and Melenchon gaining ground while Macron and Fillon have the potential to calm markets. Due to raising terror fears, voter could turn to the far-right candidate Le Pen, making short trades on EURUSD and EURJPY an interesting return opportunity. In terms of timing, opening positions before the election might provide a certain advantage over reacting to Sunday’s results."
Why should traders consider 24FX?
Sabir Sheikh: "Thank you for the insightful analysis on EURUSD and portraying the impact of the possible French election outcome. To conclude the interview can you sum up in brief, why traders should consider 24FX?"
24FX's research team: "Our innovative trading platform and our dedicated account managers offer everything you need to navigate in current market environments. Learn how to trade politics, news, data and technical patterns with your personal 24FX account manager! We are ready for you!"
Do you have questions related to the French election 24FX impact or the EURUSD analysis? Let us know in the comments section below.