After trading in an exceptionally tight range for most of the week, the euro finally broke down on Friday, falling to its lowest level versus the U.S. dollar in 3 weeks. The move had nothing to do with data as German industrial production and trade activity improved in the month of February. Instead, ongoing terrorist attacks in Europe are making investors nervous about Marine Le Pen’s chances of becoming the next President of France. She is running on a campaign of anti-immigration, anti-terrorism and the latest polls show her virtually neck to neck with Emmanuel Macron going into the first round of voting on April 23rd. The latest terror attacks probably won’t make it into next week’s ZEW survey but we continue to expect the euro to trade with a heavy bias despite improving domestic conditions. The Australian dollar has also fallen on risk aversion but the positive outcome to the Chinese/US Summit along with the rise in gold prices should stem the slide in the currency.