Euro declined in European trade on Wednesday against a basket of major rivals, extending losses for the second straight day against the US dollar and almost touching six-week lows once more as French parliamentary elections loom.

Recent polls indicate the supremacy of the far right groups, followed by a far left coalition, then the centrist party led by President Emanuel Macron in third place.

Political uncertainty will continue to permeate through the landscape in France until elections results, which might lead to the formation of a new far-right government.

The Price

The EUR/USD pair fell 0.3% today to $1.0685, with a session-high at $1.0718.

Euro lost 0.2% on Tuesday, resuming losses and approaching a six-week trough at $1.0668.

French Politics

French elections are a major flashpoint for the euro in the next few weeks, with far right and far left groups gaining momentum before elections, in turn overwhelming the centrist Macrons administration.

Latest Polls

The Economist poll showed the far right National Front party with 37% of the vote, while Macrons party fell to just 21%.

A Bloomberg poll showed the National Front leading with 35% of the vote.

An Attempt to Reassure Voters

The National Front tried to reassure voters that if they held authority, they would commit to the EU financial rules.

Its an attempt to brush out accusations of trying to ruin the economy with financially irresponsible decisions once the party assumes power.

Its worth noting that a leftist coalition is also gaining momentum, led by a collection of socialist and communist and green parties.

The leftist coalition plans to raise the monthly minimum wage to 1600 euro, and impose ceilings on the prices of basic food, electricity, gas, while removing Macrons unpopular decision to increase the retirement age to 64 years.