Bank of America Merrill Lynch Research argues that there are highly asymmetric EUR implications into the French elections.

In that regard, BofAML believes the FX market is not pricing substantial risks for the elections in France.

In the most likely scenario in which Le Pen loses the second round, BofAML expects EUR/USD to strengthen towards 1.10.

"However, we see substantial EUR downside if Le Pen wins, believing that EUR/USD could weaken all the way to 0.90 within days," BofAML argues.

Source: Bank of America Merrill Lynch Rates and Currencies Research, efxnews.