The euro slipped in early Asian trading on Monday after Germany’s election showed surging support for a far-right party that left Chancellor Angela Merkel scrambling to form a governing coalition.

The euro was trading down 0.4 percent at $1.1906 and looked set to test support around $1.1860 as liquidity picked up through the session.

Merkel did win a fourth term in office on Sunday but will have to build an uneasy coalition to form a government after her conservatives hemorrhaged support in the face of a surge by the far-right.

Despite winning the most votes, Merkel’s bloc slumped to its worst result since 1949 and her current Social Democrat coalition partners said they would go into opposition after slumping to 20.7 percent in projections, a post-war low.