The euro held a loss against the dollar before data forecast to show factory activity slowed in Europe’s two biggest economies.
European Central Bank President Mario Draghi said yesterday that further interest-rate cuts are possible after reducing them to a record low last week. The yen maintained a three-day decline against the greenback, the longest streak in more than two weeks, ahead of U.S. employment data. The Australian dollar remained weaker on prospects the central bank could lower borrowing costs to a record low today.
“The euro will probably continue to grind lower,” said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc in New York. “President Draghi made some bold remarks about the possibility of cutting the deposit rate to zero. As Draghi noted, the economic data will be key going forward. Europe is likely to underperform the U.S.”