Pound V euro: GBP strengthens against EUR after Macron French election victory

France has a new president.

Stocks dipped and the euro fell on Monday from highs touched after pro-EU centrist Emmanuel Macron's emphatic and expected victory in France's presidential election as investors cashed in recent gains.

With 33.9 percent of the vote, his rival Marine Le Pen garnered the support of more than 10 million voters, a stunning record for her far-right party National Front.

It will be hard for Macron to form a majority in Parliament because parties such as the socialists and the republicans, who supported him against Le Pen will surely not agree with all he intends to do. Le Pen had promised to take France out of the euro, for example, and her election would have led to huge market uncertainty.

She told supporters on Sunday night the National Front would "profoundly renew itself to be equal to this historic opportunity and the expectations expressed by the French in this second round". His improbable path to victory has been extraordinary in that it included dispatching France's two major political parties, the Socialists and the Republicans.

"I congratulate @EmmanuelMacron on his victory in the French presidential election". The race here also focused on the deeper question of what it means to be French.

If Macron's party performs poorly, he also could be forced to form a coalition government, a regular occurrence in many European countries but far less common in France.

But Le Pen's 34 percent - a high in any national election for her far-right National Front - confirms her party as a formidable force, its French-first nationalism increasingly accepted by a growing swath of electors despite its history of anti-Semitism and racism. In the Paris metro, an advertisement was defaced with the words: "Macron: Not even started, already hated".

Home Capital was down 6.8 per cent to $5.45 in early trading. Le Pen had promised as president to call a referendum to pull France out of the European Union, which would have threatened to destroy the institution. "Just look at Friday's trading action; we surged into the close".

In Britain, Prime Minister Theresa May said Macron's election makes it even more important for British voters to back her Conservatives and strengthen Britain's hand in European Union exit talks.

Whatever Le Pen's defeat means for populism's long-term future, Macron's victory can not disguise the fact that France remains a deeply-riven society on a number of issues and those divisions are not going to go away anytime soon.

Chancellor Angela Merkel's conservatives won a decisive victory in a vote in Germany's northern state of Schleswig-Holstein on Sunday, boosting her prospects of winning a national election in September.

The final week of the race was marked by dramatic twists and turns.

St. Louis Federal Reserve President James Bullard and his Cleveland counterpart, Loretta Mester, are scheduled to speak at separate events and could shed some light on the Fed's plans.

Some analysts, while upbeat, stressed that it was the June parliamentary elections which would decide if he had a clear mandate to move forward with his policy proposals.

A poll of almost 7,000 voters on Sunday by Harris Interactive found that 59 percent of Macron's voters had chosen him primarily to stop Le Pen becoming president, reflecting the distaste that still clings to a party long considered a pariah in France for its xenophobic associations.