The European elites jumped with joy at the news that Emmanuel Macron triumphed over his opposite number Marine Le Pen in the race for the French Presidency. The back-slaps and celebratory cigars started almost immediately upon the breaking news with congratulations piling in from all corners of the world. German Chancellor Angela Merkel even almost managed a smile as she stated that this was "a vote for Europe". However, what will be concerning the elites is the rapid rise in popularity of the right. Marine Le Pen has now established herself as the leader of the opposition. The euro took a long ride into ascendancy before the result was announced as the market 'bought the rumour' EU loving Macron would win. Now we're seeing the market 'sell the fact' as euphoria turns to reality and the euro starting to sell off. Macron has a very difficult job on his hands governing a country so hurt and divided. He becomes the youngest French leader since Napoleon but seems assured he can do the job as he stood there taking the plaudits hand-in-hand with his glamorous 64- year old wife. Not wanting to disappoint his European paymasters, Macron immediately backed a hard Brexit, but later softened his tone somewhat after realising he didn't want to suffer the same treatment Theresa May gave Jean-Claude Juncker at their "working dinner" which turned into a food fight! As at time of writing, EUR/USD is about to sink below the 1.09 handle.
So, after the investment world concentrated solely on politics to gauge the financial markets, will the attention now spin round to events further afield? After several spats last week between China and North Korea which started to resemble a ping-pong match, it's been revealed that the Koreans are preparing for war by watching a diabolical 1985 version of Godzilla! The country it seems is uniting and motivating itself by watching the film which was made by Kim Jong-un's dead dad, Kim Jong-il. Elsewhere, despite Europhiles continually banging the 'great cause for hard Brexit' drum, cable is showing good resilience and has only dropped slightly from last week's high. It's trading at just shy of 1.2950 and as warned just a couple of minutes ago, EUR/USD has just dropped through 1.09.