The currency market anticipates an indecisive competition and is worried about a possible Le Pen-Mélenchon duel in the second round of the French presidential election. The euro stalled against the dollar after the Fed's announcement, falling 1.08% to $1.1995 per euro.

As the deadline approaches, the euro, at 1.1950 dollars, will follow more the curve of polls and the popularity of Emmanuel Macron. Much earlier than in 2017, the euro, at $1.1950, is worried about the outcome of the French presidential election and the risk of a defeat for Emmanuel Macron. An extreme scenario would see Marine Le Pen and Jean-Luc Mélenchon face off in the second round.

The volatility of the euro will rise. Investors have already started to implement hedging strategies against the fall of the European currency and the rise in its volatility in April and May. Uncertainties about the euro would benefit the yen and the Swiss franc, safe haven currencies, as well as the dollar.