0757 GMT - The euro faces further possible losses if the recent turbulence in French government bonds continues due to fiscal concerns, ING's Francesco Pesole says in a note. The euro is being affected by increased fiscal risk premium and reduced European Central Bank interest-rate rise expectations, he says. While some relief in French bonds has helped the euro recover somewhat from its lows, a sustained rebound looks unlikely, he says. The fiscal risk premium is still relatively limited, leaving scope for the euro to fall to as low as $1.10 if bond-market stress intensifies, he says. The euro falls 0.1% to $1.12 after hitting a 16-month low of $1.1160 Monday, LSEG data show.