The French elections are less than a month away, and so far, the uncertainty is just increasing by the days, which likely to lead to higher volatility ahead.
The recent polls show that the nationalist Marine Le Pen is promising to hold a referendum on taking France out of the Euro. Investors are focusing on the process, and more importantly, they are concentrating on the polls.
In the meantime, the uncertainty is rising as the nationalist candidate it calling for a referendum to leave the Euro. However, even if she manage to win the election, there is a long process to hold such referendum.
How Strong Is Le Pen?
If she wins, the president in France would have no control on the parliament, especially that the National Front party has only two lawmakers in the national assembly and no declared allies who might help to form a coalition. Therefore, it would be hard to hold such referendum.
Yet, the risk is always there. Who thought that the Brexit would ever happen, even after the referendum, the world was surprised with the outcomes. Therefore, you need to keep that possibility alive.
Read more: https://www.orbex.com/blog/2017/03/cac40-gold-french-elections/