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Macron’s bold move – the risks and possible EUR impact

• The EU election results have revealed what was expected – a shift to the right in both France and Germany and elsewhere
• The decision by President Macron to call a snap parliamentary election was not expected and has created unforeseen political risks
• Whatever the political calculations there are risks to the strategy
• There are scenarios that could lead to bigger falls for EUR and some added risk-premium ahead of the elections seems likely although the key presidential election remains nearly three years away