Financial markets await France's moment of truth

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waterman
Written by Dan Waterman
December 4th 2024
Will he, won't he? French Prime Minister faces a no-confidence vote..

So judgement day is here for France and the Euro. After a snap election was called in June and an outcome that produced greater instability, we once again pay attention to political uncertainty in Europe's second biggest economy. 

The Euro has lost 1% of its value so far since the shenanigans began a week ago and it could be about to witness some further loss. Michel Barnier is expected to lose the vote, which would mean his resignation and a back to square one scenario for France. 

IF, Barnier manages to win, we will see the Euro's fortunes change for the short term at least. But we expect GBP v EUR to test 2024's high point and possibly beyond, because uncertainty and instability brings nervousness amongst investors and this will weigh on the single currency. 

With plenty of EU & US data still due out this week, expect daily volatility in all financial markets once the France result has been finalized. 
.



Expected mid-market ranges for December 4th 2024


gbp

GBP
usd

USD


    $1.2625 - $1.2700    





gbp

GBP
eur

EUR


    €1.1975 - €1.2125    



On this day -

In 1619, colonists from England celebrate the first Thanksgiving in America


In 1791, Britain's 'The Observer' is first published, the oldest Sunday newspaper in the world


In 1829, Britain outlaws "Suttee" in India


In 1918, US President Woodrow Wilson sails for Versailles Peace Conference in France



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