Traders are watching the French presidential elections with increased interest. There is growing concern that a shock result could send the Eurozone into a tailspin. The GBP/EUR pair is currently trending marginally higher; however, the French election has resulted in a dramatic weakening of the EUR/GBP in 2017. The EUR/USD pair has also appreciated somewhat, although dollar weakness has kept the currency pair in a relatively tight trading range for much of the year. The stability of the Eurozone hinges on the outcome of the French presidential elections. Anything that upsets the applecart, what with a Brexit already underway, will be devastating to unity in the beleaguered bloc.

Trading Opportunity #1 – EUR/GBP Currency Pair

This is a live wire trade right now. Depending on which candidates gain the ascendancy in France we could see fireworks with the EURGBP. It’s tough to anticipate the direction of a currency – even at the best of times. However, during a presidential race it’s especially difficult. If we have learned anything from politics, it is that we should expect the unexpected. The pundits don’t always know which way voters are leaning and snap polls may not yield accurate results.

The importance of the French presidential election cannot be underestimated: it is the #1 driver of economic sentiment across Europe. We can see from the relatively flat trading levels that there are no big movements in either direction. Sentiment remains flat. The leading candidates are all within 4 points of one another. Those who make it through to the second round will be eyed with increasing interest. If Le Pen is one of them, the EUR will weaken. This is something for binary options currency traders to keep an eye on.

Trading Opportunity #2 – Trading the CAC 40 to the Downside

The CAC 40 has been sliding over the past month and despite a short-term reversal on April 18, 2017 the index is trending bearish again. As a binary options trader, this makes perfect sense. During times of political uncertainty, traders and investors adopt a risk-off approach to equities markets. This is evident in negative speculative sentiment. Consider that on Friday last week, the CAC had 27 members down and only 13 members up. For the year-to-date, the CAC 40 remains bullish, but only marginally so.

The CAC 40 is up today after the first round of voting went against Le Pen. should not come as a surprise; the stakes are high.

Trading Opportunity #3 – Gold will Benefit from Investor Anxiety in the French Elections

Gold is hovering around the $1,300 per ounce level but it is being suppressed from further gains by several factors. For starters, the DXY (Dollar Index) is trending bullish. This broad measure of the strength of the greenback indicates a strengthening of the USD against major currencies like the JPY, EUR, GBP, CHF and others. As the USD strengthens, the price of gold retreats.

These factors play into the hands of gold bugs. As a gold binary options trader, your pathway to a clear-cut call or put option on gold is hazy. Once again, it is best to wait for the official vote tally after the first round of the election before speculating on price movements. If either Le Pen or Melanchon proceed to the next round of the election, heightened geopolitical uncertainty will ensue. This will benefit gold traders with put options.

Trading Opportunity #4 – Macy’s Inc Takes Big Hit Following Store Closures and Weak Earnings

The recent performance of Macy’s is good and bad. For binary options traders, it’s clear that the short-term trend is bearish. The stock is down over $0.50 since Friday and that translates into a loss of 1.77%. Macy’s has been hit by 20% declines over 6 months. This dovetails with the near 20% decline in Zacks Retail figures. The story of Macy’s is the same as that of other major retail operations like Wal-Mart, Target Corporation, and Lowes.

Declining in-store traffic, the rise of online sales and the closure of multiple branches is hurting the bottom line for Macy’s. This is being exacerbated by falling EPS over successive quarters, plunging net sales, and management’s poor projections for 2017. Long-term, binary options traders will be feeling optimistic about Macy’s as cost-containment is high on the agenda. If savings of $550 million can be generated, the online operations of Macy’s will gain momentum and this will boost the bottom line.