The Euro has taken a hit in today’s trading session on the back of shock election results from the Eurozone that adds to the already existing political instability.

At 11.20am (GMT) the European currency was trading at $1.1859, down from $1.1961 in yesterday’s trading session.

Although German Chancellor Angela Merkel is expected to form a coalition and remain in government, it was the rise of the far right party that caught everybody off guard when the far right AFD party picked up 13.5 percent of the vote making it the first time such a party has entered German politics since 1949.

It follows on from a number of other European countries who have suffered the same fate which many blame on the flood of refugees entering Europe leaving the Eurozone barely coping,

"Merkel’s diminished authority and the rise of a party with links, and similar Eurosceptic views among other things, to UKIP and France’s National Front  appears to be weighing on both the euro and the region’s indices," wrote Connor Campbell, an analyst at SpreadEx.

The Euro is likely to stay under pressure until Friday when retail sales figures from Germany hit the market along with CPI figures from the Eurozone.

If the CPI figures come in strongly investors may be willing to overlook the German election results and the Euro may continue its winning streak.