GS on French election risk: “Remarkably orderly and, overall, quite muted"
Francesco Garzarelli, Goldman Sachs' co-Head of Global Macro & Markets Research, expresses his take on the French presidential elections.
Key Headlines:
On a Le Pen win:
Expectations of reintroduction of national currencies would rise
Market dislocations could potentially emerge (primarily in EMU sovereign bonds)
Bank and international spillovers would likely follow
But, so far the overall market response so far has "been remarkably orderly and, overall, quite muted"
So far there is also little evidence of systemic risk
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
