EUR: Macron on course to have a significant majority in French National Assembly

Last week we saw the European Central Bank increase its forecasts for economic growth whilst keeping rates on hold. In addition, they hinted that there would be no further rate cuts. The ECB raised its growth forecast for the region to 1.9% for 2017, which was an increase of 0.1%. It also stated that it no longer saw risks to growth as being skewed to the downside. This falls in line with the positive economic data that we have seen from the region of late.

Over the weekend France held the first round of elections for its national assembly with President Macron securing a majority . The second round of voting takes place next weekend.

Looking to the week ahead we will see the German ZEW economic sentiment on Tuesday with the Eurogroup and Ecofin meetings at the end of the week. Thursday’s Eurogroup meeting may have some clues on the collective view of the recent UK elections.