Is Another "Whatever It Takes" Moment Just Around The Corner?

With the euro (somewhat perversely) heading for its second week of gains versus the dollar and its biggest in three months, there’s probably no better time to ask the following: “what happens in the event ‘Frexit’ risk rises?”

As we and every other commentator have made clear over the past month or so, Le Pen isn’t the only risk here. And indeed, if one of the mainstream candidates does win, it could serve to strengthen the National Front over the long-run if either Macron or Fillon prove unable to, as one official told Politico this week, “break the paralysis and curb high unemployment.”

To quote Bloomberg’s Richard Breslow, “unless the politicians manage to implement the structural changes needed to alleviate the insecurities of their fellow countrymen, this is going to be a problem in remission only [which means you should] be wary next week of people who tell you, ‘well that’s, that.'”

Well, with the whole world watching and with multiple measures of market nervousness still flashing red…

FranceGermany10

Skew

… this is probably a good time to present the following from Goldman who was out Thursday evening asking what the future holds for the common currency under a variety of possible electoral outcomes.

Via Goldman

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