Traders are watching the French presidential elections with increased interest. There is growing concern that a shock result could send the Eurozone into a tailspin. The GBP/EUR pair is currently trending marginally higher; however, the French election has resulted in a dramatic weakening of the EUR/GBP in 2017. The EUR/USD pair has also appreciated somewhat, although dollar weakness has kept the currency pair in a relatively tight trading range for much of the year. The stability of the Eurozone hinges on the outcome of the French presidential elections. Anything that upsets the applecart, what with a Brexit already underway, will be devastating to unity in the beleaguered bloc.

Trading Opportunity #1 – EUR/GBP Currency Pair

This is a live wire trade right now. Depending on which candidates gain the ascendancy in France we could see fireworks with the EURGBP. It’s tough to anticipate the direction of a currency – even at the best of times. However, during a presidential race it’s especially difficult. If we have learned anything from politics, it is that we should expect the unexpected. The pundits don’t always know which way voters are leaning and snap polls may not yield accurate results.

The importance of the French presidential election cannot be underestimated: it is the #1 driver of economic sentiment across Europe. We can see from the relatively flat trading levels that there are no big movements in either direction. Sentiment remains flat. The leading candidates are all within 4 points of one another. Those who make it through to the second round will be eyed with increasing interest. If Le Pen is one of them, the EUR will weaken. This is something for binary options currency traders to keep an eye on.

Trading Opportunity #2 – Trading the CAC 40 to the Downside

The CAC 40 has been sliding over the past month and despite a short-term reversal on April 18, 2017 the index is trending bearish again. As a binary options trader, this makes perfect sense. During times of political uncertainty, traders and investors adopt a risk-off approach to equities markets. This is evident in negative speculative sentiment. Consider that on Friday last week, the CAC had 27 members down and only 13 members up. For the year-to-date, the CAC 40 remains bullish, but only marginally so.