Euro drops after euro-zone PMI falls short of forecast

June 2, 2014

London (June 2) -- The euro slipped against the dollar on Monday after weaker-than-expected euro-zone factory data added more pressure on the European Central Bank to ease policy at its meeting on Thursday. The euro  fell to $1.3606, from $1.3635 late Friday. The weakness came as the final reading on the manufacturing purchasing managers' index came in at 52.2, down from the flash estimate of 52.5. Although the sector kept expanding, Howard Archer, chief U.K. and European economist at IHS Global Insight, said the data highlight "that the euro zone is still finding it a struggle to really develop growth momentum." Archer said the data reinforce the belief that the ECB will deliver a package of easing measures on Thursday; most economists have already forecast a cut in interest rates.

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