Monday saw the common currency of the European Union drop to its three-week low as speculation mounted about the European Central Bank cutting interest rates when its policy makers convene this week, Bloomberg reports.
A report indicating producer-price inflation slowed more than forecast in the euro region during November prompted the monetary unit to drop against 13 of 16 of its top rivals
Interest rates are under scrutiny as the central bank of Europe prepares for its meeting this week.
Reuters reports regional investor sentiment has driven to its 24-month high after Greece conducted a strong buyback of bonds and Spain saw jobless number slide.
"The euro zone index was stronger than expected … and that was partly due to many rather minor positive reports from around the region," according to a statement released by Sentix on Monday, as cited by Reuters. "Investors are relieved that the country avoided falling over the fiscal cliff but they are disappointed about how the American tax compromise came about and about the compromise itself."
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