Euro loses ground vs. dollar ahead of ECB meeting

Euro bounced off the highest since May 3, 2016 for the second consecutive session against the dollar, following earlier data from the US, and amid a lack thereof from the euro zone. 

As of 03:46 GMT, EUR/USD fell 0.32% to 1.1517 from the opening of 1.1554, with an intraday high at 1.1557, and a low at 1.1510. 

German finance minister Wolfgang Schäuble commented in earlier remarks that the euro zone should carry on its efforts to cut public debt, asserting the need to reach sustainable levels for the budget, while noting the region's economic recovery is gaining momentum, adding his country is ready to reinforce integration with other members. 

Schäuble noted that European integration is the best since the 19th century until now despite Britain's exit, while investors await the European Central Bank's meeting tomorrow amid expectations the bank will hold the current easing policies and record low interest rates. 

Otherwise, earlier US data showed mostly positive building permits and housing starts data in June, stemming the losses of the dollar as markets price in lower chances for a third rate hike by the Federal Reserve this year. 

The policy divergence between ECB and the Fed is widening, as markets expect a possible tightening of monetary policy by the ECB later, while the Fed will probably hold off another rate hike this year, sending the euro to a 14-month peak against the dollar.