Tomorrow France will choose the new President. Following on this, AtoZForex reached out to STO, inquiring about French election STO impact and major pairs outlook.
22 April, AtoZForex – The common currency has been under pressure for some time now due to the political unrest in Europe. Adding to Brexit worries, the next challenge for Euro is the French election. Some experts believe that the shared currency could drop to $1 or below, in case of Marine Le Pen victory tomorrow.
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 the French election. Furthermore, we have received inquiries from our readers about the brokers’ risk management precautions. Following up with AtoZ Approved STO, below I have summarized the key highlights of French election STO impact and risk management interview.
French election STO impact and risk management
Kristina Frunze: “Is STO planning to raise margin requirements or have any leverage change?”
STO‘s research team: “In light of recent geopolitical events and in an effort to protect our clients’ funds from the potential volatility as a result of the first round of the French Presidential Elections on April 23rd, we will be temporarily doubling the margin on the currency pairs and indices listed below.”
French election is a major test for Euro area’s unity
Kristina Frunze: “What is your research team’s projection and analysis for the major pairs on the upcoming elections?”
STO‘s research team: “The weekend’s election in France certainly has the potential to bring some uncertainty to EUR crosses, although against the dollar we saw some renewed strength last night off the back of a less than stellar Beige Book release by the Fed. Even the release of some slightly worse than expected German PPI data this morning has failed to detract from the currency, with EUR/USD having traded in a very tight range for the last 36 hours. To this extent there doesn’t seem to be that much risk mitigation in play against the common currency, although it would be no surprise if we see some weakness creeping in during Friday’s trade.
A big build in US gasoline reserves served to unsettle oil prices through yesterday’s session and although we have seen a modest bounce, further volatility is probably to be expected in the short term as today is the settlement date for the May ’17 contracts. To this extent another test on the $50/barrel mark may be feasible, although with that overhanging expectation of Opec extending production cuts into the second half of the year, there’s every reason to believe that downside pressure won’t last long.
The Aussie dollar may have recovered the 0.7500 handle against the greenback, but there’s little around to provide support to these gains, which largely seem to be spinning off the back of US dollar weakness. On the basis that we have no high profile economic data due from Australia before the weekend break, and with the Aussie dollar having little safe haven appeal, it is easy to see how another leg lower could materialise in the short term.“
Why should traders consider STO?
Kristina Frunze: “Thank you for the insightful analysis on the major pairs and portraying the impact of the possible French election outcome. To conclude the interview can you sum up in brief, why traders should consider STO?”
STO’s research team: “Open a live account with STO and receive up to $3 USD on each standard lot you trade – Trade metals and Forex with an STO Classic and receive this cash back offer. Offer only available to FCA clients.”
Do you have questions related to the French election STO impact or the major pairs analysis? Let us know in the comments section below.