In less than a week’s time, the European Parliament elections will start, making way for more volatility in the financial markets. One asset that will take most of the hit will definitely be the Euro against its major counterparts. Could we see a comeback, or might the single currency take yet another hit?
One very interesting fact about this year’s elections is that the UK, although in the process of still deciding whether or not to leave the EU, will have to vote.
The elections for the Members of the European Parliament (MEPs) will take place between 23rd -26th May. 512 million citizens, from 28 Member States, will have to decide who will be the 715 MEPs, that will have to represent the people’s voice on matters like employment, affairs, safety, migration and climate change.
Based on the results for each country, indices like: DAX, CAC 40, MIB, FTSE, Ibex or Euro Stoxx will flicker, or even jump up and down. This can only mean that their overall movement will influence the trend of the Euro, in relation to the other main currencies against which it’s being traded.
This event opens the door for traders from all around the world to participate in the markets, employing various trading strategies, for longer or shorter periods of time, given the multiple assets that can be influenced by the elections.
Given that the Euro has been losing a lot of ground in front of the USD and the JPY since February 2018, these might be two of the pairs that market participants will be closely following during the four days of the elections, but also before and after the event.
Since the UK still has to participate in these elections, the GBP/EUR, but also the GBP/USD might have some surprises in store for us. Stay tuned for more details.
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