The weekend`s major news announcement was confirmation that French Presidential Candidate Macron has become the President elect after having won the 2nd round of polling against Le Pen. The vote came in at 66.06% to 33.94%, confirming last week’s market sentiment that Macron would take the win. The lead up to the election weekend, saw the EUR being bought aggressively as markets priced in polling data which showed his advantage in numbers. The markets opened with one final push higher by buyers before we saw sellers re-enter, after the fact, on covering of long positions and bargain hunting selling. Technically, the EURUSD remains between the 1.0950 support level and the 1.1000 resistance level, with a capture of either likely to set the tone for the upcoming week. Positive data out of the EU will see the 1.1000 level being tested while more pessimistic news will see the 1.0950 support level being tested.
In commodities, gold was sold off in early trade as we saw the precious metal gap lower to test the 1220 level on reduced risk form the French election, before buyers resurfaced on profit taking and bargain hunting to drive the precious metal back towards the 1230 level. Gold will look to push higher on uncertainty while an increase in risk appetite will see bears try again for the 1200 level. In Crude Oil, we saw a good recovery as the commodity traded 7% higher than its Fridays lows with $47 per barrel being tested earlier as OPEC countries sighted brief dips in demand and an increase in supply by non-OPEC countries as a reason for the selloff while reiterating their support for an oil supply freeze. Traders will remain sensitive to news regarding supply and demand, quickly snapping up oil if there is cause to believe that supply will be cut or demand will increase.