Euro fell in European trade on Tuesday against a basket of major rivals, extending losses for the third straight session against the dollar and almost trespassing the five-week low amid mounting EU political risks.

Anti-EU parties are on track to acquire a quarter of seats in the European Parliament in 2024, up from a fifth in 2019.

The French governing party lost the EU vote to the far right, prompting French President Emanuel Macron to dissolve the local parliament and call for early elections.

The EUR/USD pair is facing increasing pressures amid political uncertainty in the eurozone, with analysts expecting more losses to come.

The Price

The EUR/USD pair fell 0.25% today to $1.0740, with a session-high at $1.0773.

Euro lost 0.3% on Monday against the dollar, plumbing five-week lows at $1.0733 following recent European political developments.

EU Parliament Elections

After election results were revealed, the far right groups controlled nearly a quarter of the Brussel-based Parliament, up from a fifth in 2019.

Some analysts noted that even as centrist groups managed to maintain their majority, the new European Parliament is now the most right-wing it has been since its establishment.

Early French Elections

French President Emanuel Macron dissolved the parliament and called for early legislative elections after the results of the EU Parliament elections.

The governing French party lost the EU elections to the far right, forcing Macron to gamble with the new local elections to try and reassert authority.

Analysts note that the odds of a surprise win by the far right in French elections will keep the euro under pressure in the short term.

Grim Outlook for Euro

Singapore Banks analysts pointed to French political risks as the main reason behind euros performance as the worst performing major currency this week.

They expect the EUR/USD pair to fall once more below $1.07 in the near term.