MUFG: Uncertainty in French politics will rise, and the euro is expected to remain stable.

On July 8th, Jinshi Data reported that Mitsubishi UFJ Financial Group stated that political uncertainty in France may continue to rise in the coming weeks, but the euro may remain stable. Analyst Lee Hardman said in a report that because none of the three major parties or alliances were able to gain an absolute majority of seats, the next government may have difficulty implementing policies. He said that this is a mild negative impact on the French economy and the euro, but it is better than the majority of seats won by extreme right-wing or left-wing parties, whose policies may be more destructive. “Overall, these developments support our expectations that the euro against the US dollar will continue to be stable between 1.0500 and 1.1000 in the near future.”