The electoral week kicked off yesterday when the French went to the polls in the first round of what, to an outsider, is a complex process. Le Pen’s party did well but now onto the next round with the only assured outcome being change for both France and Europe. The UK has its general election this Thursday, and saying it would be a shock if Labour didn’t win comfortably would be an understatement. The result is undoubtedly priced into sterling, and initially, at least, there shouldn’t be any immediate repercussions in the financial markets. With the election over, the Bank of England will be freed from its recent shackles and able to follow its wish to cut interest rates with a cut possibly as early as August, although the smart money remains on a drop in September.

The Summer Solstice has come and gone, and the days have started to shorten in the Northern Hemisphere. But for many, summer is just beginning, and certainly in Europe, thoughts of lazy days on the beach and warm swims are starting to preoccupy thoughts.

Last Wednesday, Jay Powell and his team delivered a slightly more hawkish message than some traders had expected as they pushed the prospect of sustained easing into next year. In particular, they gave the French markets a good kicking after President Macron called for a snap election. His decision lays open the divisions within France and may well backfire on the incumbent and his Renaissance party. With political instability, an anathema to financial markets, we may have an uncomfortable few weeks ahead for the single currency.