Our thoughts and prayers go to all those affected by yesterday’s attacks in Nice. Bastille day, a French national day commemorating the Storming of Bastille during the French Revolution was sabotaged in the latter hours of yesterday.

Of what little is known so far, a man in his 30’s drove a truck into a crowd before opening fire on French nationals before being killed by police. French President Francois Hollande has pointed at “Islamic extremism” as the cause of the attacks.

GBPEUR exchange rates rallied a cent in the early hours of the morning before returning to the lower 1.20’s. Since 7am this morning rates are slowly crawling back to the 1.21 mark as more news of the attacks unfolds.

The Rise of Marine La Pen and Nicolas Sarkozy

Marine La Pen has been polling higher in recent weeks and yesterday’s attacks would have impacted the mood of the French people. Being as this is now the third terrorist attack in 2 years in France, there are concerns that this may open the doors to further right wing support.

What impact would this have on the Euro? Marine La Pen has pledged her support for an EU Referendum if she is elected, which could lead to the EU’s second leaving member.

France is the EU’s second largest net contributor, marginally in front of Britain. The impact of France leaving the EU would be catastrophic to the single market which could lead to an EU breakup.

What next for the EU?

Problems are still brewing in the EU with concerns for the Italian economy which have come to light this week. Greece is due its latest payment in the next couple of weeks and we are yet to see if they will meet demands, could another bailout be on the horizon?

It’s also unclear as to whether Britain will continue its contribution to the EU after Brexit, and who will fit the bill in the event a Hard-Brexit was to materialise.