0734 GMT - The losses suffered by Germany's ruling Christian Democratic Union in state elections should have a limited impact on the euro, ING's Francesco Pesole says in a note. The results of the election mostly reflect local dynamics rather than a verdict on Chancellor Friedrich Merz's reforms, he says. Still, delivering that agenda could become more challenging with CDU support falling and the political landscape becoming increasingly fragmented, he says. "These developments add some clouds to the euro, but are not enough to displace rate differentials and oil as its primary drivers." The euro falls 0.1% to $1.1474.