Euro rose in European trade on Monday against a basket of major rivals, while moving in a positive zone for the first time in three days against the US dollar away from recent six-week lows.

Investors still expect the common currency to head south amid ongoing uncertainty about French elections and the latest success of the far-right all over Europe.

The Price

The EUR/USD rose 0.2% to $1.0715, with a session-low at $1.0680.

The pair lost 0.1% on Friday, trading near six-week lows at $1.0668 after grim European services and manufacturing data.

Euro lost 0.1% last week against the dollar, the third weekly loss in a row amid geopolitical tensions in Europe.

French Politics

Markets are focused on upcoming French elections in particular, as the far right is poised to overcome French President Emanuel Macrons centrist party in the parliament.

A far right or a far left prime minister in France could worsen the government debt situation, which has already reached worrisome levels.

The German-French 10-year government bond yield gap surged recently as investors abandon French bonds amid concerns about increasing debts and the political situation.

Euro Outlook

City Index analysts believe the euro will be dragged lower in the short term due to political concerns about the success of the far right in France and Europe overall.

They know expect the EUR/USD pair to slip below $1.07 once more.