Tensions are mounting in France’s presidential election race. A Le Pen victory could drag the EUR/USD down to the 1.05 level, economists at ING report.

Add French politics to the euro’s other challenges

“While Frexit is less of a risk today than it was back in 2017, concerns of a Le Pen victory and what it would mean for the unity of EU policy response are just adding another bearish layer for EUR/USD.”

“A strong performance from Le Pen in the first round and a surprise win in the second would see EUR/USD trade 1.05 sooner rather than later.”