EUR/USD down near 1.3480 on ECB Outlook

The euro was 0.1 percent from its weakest level in more than two months on concern weakening inflation pressures in the region will prompt the European Central Bank to ease monetary policy.

The yen declined versus all of its 16 major peers after official Chinese data on Feb. 1 showed manufacturing expanded in line with the median forecast of economists in a Bloomberg News survey, damping demand for the currency as a haven. Australia’s dollar held gains from last week before the nation’s central bank sets interest rates tomorrow.

“I’d recommend selling euro-dollar on a rebound,” said Daisaku Ueno, the Tokyo-based chief currency strategist at Mitsubishi UFJ Morgan Stanley Securities Co., a unit of Japan’s biggest financial group by market value. “There’s a good chance of additional monetary easing in the euro region if disinflation persists.”

Bloomberg

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