Euro slips as traders anticipate dovish stance at ECB

[NEW YORK] The euro slipped against the dollar and other currencies Monday amid some anticipation that the European Central Bank will signal a bias toward easier policy this week.

The euro fell to US$1.1322, and to 135.30 yen, still within its October trading range.

The dollar meanwhile was flat against the yen at 119.50 and slightly lower against the pound at US$1.5465.

"Investors are selling euros ahead of Thursday's European Central Bank meeting on the fear that (ECB President) Mario Draghi could say or do something that would be consistent with easier monetary policy," said Kathy Lien of BK Asset Management.

"The month of September was tough for the eurozone's largest economy with industrial production and factory orders falling," she said.

Marco Valli, chief eurozone economist at UniCredit, said they expect no concrete change in policy but more "dovish rhetoric" after the meeting, "mainly intended to stem the euro's appreciating trend."

AFP