Upward reacted it euroin the indications that her far-right party Marine Le Pen won the first round of parliamentary elections in France less comfortable than some polls predicted.

As announced by the French Ministry of the Interior, National Alert (RN) and its allies received 33% of the vote in the first round of parliamentary elections, while the leftist New People’s Front came second with 28%.

The president’s centrist coalition Emmanuel Macron received 20% of the vote, according to the ministry’s announcement.

“A scenario where NR could govern on its own now looks less likely,” and that boosted the euro as worries about a fiscal derailment eased, he says in BloombergThe Rodrigo Catril, a strategic analyst at National Australia Bank in Sydney. “We now have to wait and see how the run-off shapes up and whether the other parties can cobble together a united opposition to the RN.”

All the “lights” are directed to the European markets

Investor interest is now turning to the opening of European markets, with analysts waiting to see if the slide in the French market and the massive sell-off seen in French bonds of late will continue.

The euro, which had fallen 0.8 percent after President Emmanuel Macron called for elections on June 9, was up 0.4 percent at $1.0756 in Asian markets, after hitting a two-day high earlier in the session. weeks.

“They (the RN) actually did a little worse than expected,” says Karole Kong, head of foreign exchange strategy at the Commonwealth Bank of Australia.

“As a result of this, we saw the euro rise slightly in early trading in Asia just because we would have less fear of more expansionary and unsustainable fiscal policy if the far-right party did a little worse.”

The rise in the euro sent the dollar slightly lower against a basket of currencies, despite the U.S. currency recovering on Friday data showing inflation eased in May, bolstering expectations that the Federal Reserve, the U.S. central bank , will start cutting interest rates later this year.