EUR/USD Remains Below 1.3480 Before Retail Sales

The euro remained lower after sliding in six of the past seven days before data that may show consumer spending fell in the region, bolstering prospects the European Central Bank will consider stimulus at a meeting tomorrow.

Europe’s common currency dropped 1.4 percent versus nine developed-market peers in the past week, with data today projected to confirm a slowdown of the region’s services and manufacturing industries. A gauge of U.S. dollar strength was near a seven-week high as traders weighed the timing of a reduction in Federal Reserve stimulus. New Zealand’s dollar climbed to its highest since Oct. 24 as employers added more jobs than forecast, spurring bets on interest-rate increases.

“The euro will remain heavy amid speculation the ECB may cut rates,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The euro had gotten too high, and that wasn’t good for Europe.”

Bloomberg

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