The euro struggled to hold on to $1.12 today as investor relief at limited gains for eurosceptic parties in European parliamentary elections was offset by declines in the share of seats held by the biggest blocs. 

While centre-right and centre-left blocs lost their shared majority, surges by the Greens and liberals meant parties committed to strengthening the union held on to two-thirds of seats.

The euro initially rallied to as high as $1.1215, near its highest in over a week, and off a two-year low of $1.11055 touched on Thursday. 

But in later trade it was down 0.1% at $1.1192.

The election results dented the hopes of anti-immigration, anti-Brussels National Rally led by Marine Le Pen, Italian Deputy Prime Minister Matteo Salvini and others who have been opposing attempts to forge closer EU integration. 

Analysts said the election, normally of limited interest to global markets, was the first of a series of meaningful political events in Europe this year, although monetary policy still mattered more given signs of slowing economic momentum. 

Foreign exchange investors are focused on how the US Federal Reserve will react to a worsening economic outlook.

Trading was set to be subdued today due to market holidays in London and New York, limiting moves in other currency pairs. 

Meanwhile, the pound rose marginally to $1.2718, having regained some ground from four and a half month lows after Prime Minister Theresa May set out a date for her departure. 

The prospect of a "no-deal" Brexit is fast becoming the defining issue of the race to succeed her. 

"Sentiment towards the pound is still negative," said Marshall Gittler, an analyst at ACLS Global, citing option market data that signalled people were buying insurance against a further fall in the pound and positioning data showing a big increase in short positions against it.