FxWirePro: Long pound if Le Pen wins

The short interest in the pound has reached the highest level in years and it has performed horribly since the Brexit referendum in June last year but it can outperform all of its European peers if Marine Le Pen comes out as a victor in the upcoming French Election. While on the outside, the European Council President seemed to be weeping at Britain’s leaving, most of the leaders of the Union want to see Britain get punished for leaving the European Union and fracturing a hole for the first time in its history.  The European Union is not only looking forward to making Britain pay € billions but snatch the lucrative financial transactions businesses such as the euro clearings away from the United Kingdom. The battle to snatch it was already fought before the Brexit referendum between the European Central Bank (ECB) and the Bank of England (BoE), however, the court ruled in favor of BoE. That battle is likely to get fought again and this time, with much more ferocity. One must remember, as long as the UK is not out of the European Union, the laws of the Union still applies to the UK, which obviously favors the EU.

But if the Front National leader Marine Le pen wins the upcoming French election, the leaders of the European Union will have a much bigger situation at their hands. Madame Le pen has promised an exit referendum within six months of her win. In such a case, the existence of the euro would be put into question and that in turn would benefit the pound as a safe haven in the European continent. It also enhances the possibility of a better deal for the UK.

The pound is currently trading at 1.259 against the dollar.