The euro was set for a three-week decline before data that may show German business confidence fell, adding to signs of regional weakness that may prompt the European Central Bank to boost stimulus as soon as next month.
The 18-nation currency approached a three-month low versus its U.S. peer amid concern euro-skeptic parties will gain ground in elections for the European Union Parliament. The dollar remained higher against most major counterparts before a U.S. report that may indicate an increase in new home sales last month. Thailand’s baht rose after the nation’s army chief took control of the country and suspended the constitution.
“The euro is being sold as markets price in easing by the ECB next month,” said Koji Iwata, the New York-based vice president of foreign-exchange trading at Mizuho Bank Ltd., a unit of Japan’s third-biggest financial group by market value. “The elections add an additional risk, and the market will hedge against that, providing another source of euro weakness.”