By Elizabeth Pineau and Michel Rose PARIS (Reuters) -French political parties were racing on Monday to field candidates and discuss possible alliances following President Emmanuel Macron's shock decision to call a snap election after a bruising loss in Sunday's vote for the European Parliament.

French President Emmanuel Macron called a snap legislative election after the far right pummeled mainstream parties in France as well as Germany in a European Parliament vote.

Julien Robin, a specialist in French parliamentary life, looks at what the surprise dissolution means for French politics.

PARIS, June 9 (Reuters) - French President Emmanuel Macron rolled the dice on his political future on Sunday, calling snap legislative elections for later this month after he was trounced in the European Union vote by Marine Le Pen's far-right party.

Macron stunned Europe last night by announcing he would hold new legislative elections later this month — three years early, and in the middle of preparations for the Paris Olympics. The extraordinary gamble came moments after European Parliament exit polls pointed to a dominant showing by Marine Le Pen's National Rally and major gains for other far-right parties across Europe.

The euro fell sharply on Monday after gains by the far right in European Parliament elections on Sunday prompted French President Emmanuel Macron to call a snap national election. The uncertainty in France adds one more element to what will be a busy week for markets with U.

President Emmanuel Macron dissolved the lower house of France's parliament in a surprise announcement sending voters back to the polls in the coming weeks to choose lawmakers, after his party was handed a humbling defeat by the far-right in the European elections Sunday.

President Emmanuel Macron said Monday that he was confident French voters would make the "right choice" in snap elections he called after the far right crushed his centrist alliance in Sunday's EU ballot.