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European equities waited until afternoon to celebrate lower French political risk

Despite the EUR- and equity-positive result of the first TV debate among candidates forr the French presidency there was no positive momentum on main European stock exchanges in the morning. They are trying to catch up now.

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France is showing a strong bullish drive now; so are its southern peers; source: xStation5

Another issue that sparked this rally was a comment from German finance minister that International Monetary Fund informed him that it will join the Greek rescue program. IMF was on hold for months with this, and while the Greek story is far less important now than in the period of the sovereign debt crisis in Europe it is an important step forward in removing risks that could threaten the integrity of the Euro bloc.

DAX is also moving on in its mid-term uptrend, confirming our expectation that it wants to establish a higher low today.

Such improvement in the sentiment has proved to be a positive factor for the Swedish Krona, and indeed we can see that it managed to stay within a wedge on EURSEK, which means that an attempt at getting below the last low at around 9.4550 is a possibility now.

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Better mood on European equities came at the right time to prevent EURSEK from dropping out of the wedge. source: xStation5

 

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