After the shock results from the UK and the US last year all eyes are now firmly locked on the Eurozone where the French elections, scheduled for April and May 2017, are generating concern within currency markets. As anti-establishment sentiment grows across the world, investors have become more fearful, which is driving volatility in FX markets. Investors are watchful of far-right candidate Marine Le Pen, who is calling for France to exit the Eurozone (Frexit) and the return of the Franc as national currency. Le Pen has been one of the leading candidates since the beginning of 2017.
Opinion polls suggest the odds are low that this Eurosceptic candidate could win the 2nd round in a face-to-face opposition against her main rivals on May 7th. However, the recent failure of forecasters to predict the UK referendum and US election results has spurred investors to remain cautious and asses their currency risk.