“This is very much what the market expected so what we saw happen, is that the euro has been marked sharply higher immediately as the results were known and since then it’s actually been trickling lower,” he said.
Chandler also noted that the results showed that the market may be able to throttle back concerns about other risks.
After the U.K. voted in June to exit the European Union, fears have risen that other European nations might exit, potentially breaking up the monetary union or the entire trading bloc.
“The big takeaway from this, like the Dutch election earlier this year, is that there is not a populist, nationalist wave sweeping across the world,” Chandler said, noting that Germany’s right-wing, anti-immigration, Eurosceptic party AfD was “very weak” and getting weaker.
But others attributed the euro’s step back to continued concerns over Le Pen.
