Foreign exchange - Euro decrease after weak euro zone inflation knowledge

© Reuters. Euro lower as weak euro zone inflation data ramps up pressure on ECB to act

Investing.com – The euro moved lower against the dollar and the other major currencies on Wednesday after added to pressure on the European Central Bank to step up stimulus measures.

was down 0.45% to 1.0585, re-approaching Monday’s seven-month trough of 1.0552, from around 1.0622 ahead of the data.

Eurostat said the rose just 0.1% in November, below forecasts of 0.2% and unchanged from the previous month.

, which excludes energy, food and tobacco, rose just 0.9%, slowing from 1.1% in October, indicating that inflationary pressures in the region are weakening.

The data added to the view that the ECB could announce fresh measures to bolster price growth at its meeting on Thursday. At its October meeting the ECB indicated that more stimulus was a possibility.

Many analysts expect the ECB to cut some deposit rates deeper below zero and expand the bond-buying program that it started in March.

The euro was also weaker against the yen and the pound, with down 0.2% to 130.38 from 130.81 earlier and sliding 0.26% to 0.7031.

Sterling erased losses against the euro after falling earlier following data showing that output in the .

The dollar moved higher against the other major currencies, boosted by the weaker euro and as expectations for higher U.S. interest rates continued to underpin investor demand.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.26% to 100.14, not far from Monday’s highs of 100.36, the most since mid-April.

The greenback had eased after the Institute for Supply Management reported Tuesday that t, slowing to the weakest level since June 2009.

The weak data was seen as unlikely to prompt the Federal Reserve to delay hiking rates next month, but sparked fears that further monetary tightening could hamper the U.S. economic recovery.

Investors were looking ahead to Friday’s U.S. jobs report for November for fresh indications on prospects for a December rate hike. The U.S. was to release data on private sector jobs growth later in the day.

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Foreign exchange - Euro decrease after weak euro zone inflation knowledge