[Source: Reuters]

The euro touched a 10-day high on Sunday, after the first round of France’s shock snap election put the far-right in first place, but offered little further clarity on the final outcome, leaving investors bracing for further volatility.

Marine Le Pen’s National Rally (RN) emerged ahead in the first round, confirming expectations, although analysts noted her party won a smaller share of the vote than some polls had initially projected.

But uncertainty prevailed, as the final result will depend on how parties decide to join forces in each of the country’s 577 constituencies for the second round, setting the stage for days of horsetrading before next Sunday’s runoff.

One poll showed the RN potentially winning an absolute majority.

The euro , which has fallen 0.8% since President Emmanuel Macron called the election on June 9, rose 0.3% to $1.0749, the highest since June 20, as Monday’s Asia-Pacific trading session got underway, according to LSEG data.

The shock vote has rattled markets, as the far-right, as well as the leftwing alliance that came second on Sunday, have pledged big spending increases. Investors have been alarmed, given France’s already high budget deficit that has prompted the EU to recommend disciplinary steps.

Last week, the premium bondholders demand to hold France’s debt over Germany’s surged to the highest since 2012, during the euro zone debt crisis.

Shares in its big three lenders (BNPP.PA), opens new tab, (CAGR.PA), opens new tab, (SOGN.PA), opens new tab have dropped 9-14%, leading losses of nearly 7% in the Paris CAC 40 stock index (.FCHI), opens new tab.

Attention will turn to bond and stock markets when they open for European trade on Monday. Analysts expect little meaningful recovery in France’s bonds.