Heads up: French prime minister Bayrou set to face confidence vote later ...Middle East

For the most part, the euro currency has shrugged off the risks associated with the situation in the region's second largest economy. So, that's one clear spot to look at in terms of potential negative reactions from markets. That at least is what Societe Generale is arguing.

They outline that if the general election leads to a hung parliament and/or a National Rally win, that would cause "significant political and fiscal risks". In turn, that will be the most negative outcome for the euro.

But in the case of any other outcome (even in the confidence vote), any positives will be limited and could be slightly negative at the balance. Societe Generale is noting that the market is being complacent right now and that the probability-weighted outcome for EUR/USD implies a target of 1.1570

This article was written by Justin Low at investinglive.com.

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