The Euro has weakened after an opinion poll showed that far-right French presidential candidate Marine Le Pen is making ground on her opponents (Macron and Fillon).
Although still unlikely, the closer she gets to the second round of the elections in May, the more fear there will be of another shock populist vote. Her party are anti-EU and a win would most likely lead to a Frexit, which would probably see the demise of the EU.
Politics is still the main driving force behind the rates and markets remain very twitchy over any new developments. At the moment, focus appears to be switching slightly away from the UK and more towards Europe, as the Dutch and French election get nearer. Any further signs of populist movements gaining momentum will likely cause large moves in the rates.
As a result, the Pound has pushed to a 2-mth high against the Euro, having moved 2 cents higher from last Friday. The EUR/USD rate is towards the lowest levels of the year but the GBP/USD remains fairly buoyant.