As the first round of the French Presidential election on April 23 nears, finance experts predict the euro could fall to 1.03 against the US dollar.
There are 11 candidates in the race, and assuming none wins a majority, the two highest scorers face off two weeks later.
The two-round system was introduced in 1962 by Charles de Gaulle, and has proved successful against extremists.
How will the French election affect the euro?
France is one of the largest and most powerful economies in the European Union. Considering its significant weight, a change in the country’s presidency will undoubtedly have a strong impact on euro.
The change could continue euro’s long-running weakening trend, or help it to gain greater strength in the coming years.
“What matters for investors is any threat to the euro. The currency is under pressure as a result of the French presidential campaign. We maintain our call that the euro could reach a level of 1.03 against the dollar as we move closer to the final date, and if Marine Le Pen wins the first round, we could easily see the euro breaking this level,” said Naeem Aslam, chief market analyst at Think Markets UK.
Polls continue to show only a slight gap between the frontrunners in the first round. With National Front leader Marine Le Pen still narrowly ahead.
Although this Presidential election is one of the most unpredictable in modern French history, French opinion polls have so far indicated some of the possible frontrunners (in alphabetical order): Francois Fillon (Les Republicans), Benoit Hamon (Socialists), Marine Le Pen (Front National), Emmanual Macron (Independent) and Jean-Luc Mélenchon (Unbowed France).
According to Marine Le Pen, the European Union is in a state of collapse. She considers that France must prepare for the “inevitable” disintegration of the EU, and that implies exiting the euro.