Summary The euro stabilized against the dollar after three straight days of declines.
NEW YORK (AFP) - The euro stabilized against the dollar after three straight days of declines as investors looked ahead to a busy week of economic data.
The euro, which hit a 14-month low last week against the greenback, inched up to $1.2686.
The advance came despite a flash estimate released by the German federal statistics office Destatis showing that inflation in Europe s largest economy stood at just 0.8 percent year-on-year in September for the third month in a row.
Inflation has been unusually low across the 18-nation eurozone, fueling concern the region could slip into deflation.
But analysts said currency traders were holding their fire until later in the week, as a heavy calendar of data releases culminates with Friday s US jobs report for September.
"The euro s best friend for now may be caution, with a busy lineup of global data due this week," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
Manimbo said traders do not expect major announcements from Thursday s European Central Bank meeting. But the ECB could hint at more aggressive action down the road.
"Key for the ECB this week will be whether it signals a door opening wider to the prospect of it deploying stronger stimulus," such as quantitative easing, he said.
