Euro dives to 3-week low on stimulus bets in Europe

Euro fell as the European market today, to extend losses for the third straight day against US dollar to 3-week low, while heading for the second weekly loss, on increased markets bets for the European Central Bank to inject more stimulus into the economy, in its attempts to counter the mounting risks that surround the european economy.

EUR/USD shed about 0.2% to $1.1060, which is the lowest since August 1st, from the opening of $1.1079, with a high of $1.1085.

Euro shed 0.1% against dollar yesterday, after the ECB meeting minutes release as well as positive manufacturing data in Germany and Europe during August.

During this week, Euro fell by 0.3% against the dollar, to head for its second weekly loss, due to the renewed fears of a more divergent monetary policies between Europe and the US.

The ECB July 25th meeting minutes revealed the mounting concerns of the european monetary policymakers about growth and inflation expectations.

The ECB's assessment had become more pessimistic about growth, as the risks are spreading and if they continued it may eventually require a revision of the basic growth scenario.

In Europe, both actual inflation and long-term inflation forecasts have been a concern for European monetary policy makers.

The majority of ECB members favor a package of new stimulus measures, rather than a series of individual stimulus.