Voters in France rebuked traditional mainstream parties on Sunday by endorsing independent Emmanuel Macron and the National Front’s Marine Le Pen, setting the stage for a high-stakes run-off vote in two weeks’ time.

With nearly 90% of the votes declared, Macron held roughly 24% of the popular vote. Le Pen was a close second at nearly 22%.

On Friday EURUSD closed at 1.07274. Following the election results, the pair opened on Monday at 1.09134, during the Asian session but has since retraced some of its gains. The Euro, however, continues to be on a bullish run.

Republican Francois Fillon and communist-backed Jean-Luc Melenchon were Nos. 3 and 4 respectively, latest polling showed. Melenchon surged in the polls in the weeks leading up to the election, as Fillon came under fire over allegations he paid his wife hundreds of thousands of euros for a job she didn’t perform.^[1]

Conceding defeat, Fillon rallied his fellow Frenchmen and women against Le Pen, the far-right leader who has vowed to close France’s borders and eject her country from both the euro and European Union (EU).

“The National Front, the party created by Jean-Marie Le Pen, has a history known for its violence, its intolerance.  Its economic and social program would lead France to bankruptcy and, to that chaos, you would have to add the European chaos of exiting from the euro,” Fillon said.

“I assure you: Extremism can bring only misery and division to France. So, there is no option but to vote against the extreme right I will, therefore, vote for Emmanuel Macron,” he added.^[2]

Macron and Le Pen will now square off for the presidency in a second-round run-off election scheduled for May 7. Pollsters have long held that Macron will easily win in the second round. However, analysts have cautioned against writing off Le Pen entirely.

The results of Sunday’s election were widely predicted by pollsters, and highlighted the growing division in France’s political system. The outcome marked a major shift away from traditional French politics, with neither candidate hailing from an established party.

The results were also significant in that they mirrored others, such as the United Kingdom’s decision to leave the EU and the U.S. election of Donald Trump. In both cases, populism prevailed, with voters rejecting establishment candidates and party-line politics.

Expectations of a Macron victory next month sent the euro surging in the early hours of Monday trading. Macron, who supports open markets and France staying in the currency zone, is the preferred candidate of investors.^[3] In their view, Macron is seemed to better for stability and the continuation of status quo policies, both of which could benefit the financial markets.

^[1] Henry Samuel (March 14, 2017). “Francois Fillon placed under formal investigation over British wife ‘fake jobs’ allegations.” The Telegraph.

^[2] Christian Oliver and Marion Solletty (April 23, 2017). “Defeated Fillon rallies France against Marine Le Pen.” Politico.

^[3] Richard Blackden (April 23, 2017). “Euro surges on the prospect of Macron thwarting Le Pen.” Financial Times.