The euro was 0.4 percent from its lowest level versus the dollar since November as investors held the largest position in two years betting on a drop in the currency before the region’s central bank meets this week.
Europe’s common currency slid 3.2 percent in the past three months amid unprecedented stimulus as the European Central Bank acted to spur inflation that slowed in July to the weakest in almost five years. Policy makers meet again Aug. 7. Australia’s dollar rose a second day after retail sales in the nation climbed at twice the pace economists forecast. The greenback held gains versus most major peers with data tomorrow predicted to show growth in services activity accelerated.
“The trend in euro is clearly down, and we think that story’s got further to run,” said Imre Speizer, a markets strategist at Westpac Banking Corp. in Auckland. “Draghi will maintain his dovish tone for sure, given the inflation data across Europe has been mostly weak,” he said, referring to ECB President Mario Draghi.
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