Euro Under Pressure On Rate Outlook

The euro is under renewed pressure today, just a day after the single currency's biggest ever one-day fall against sterling Monday.

The European Union's statistics office Eurostat said inflation in the 15 countries using the euro in December was up just 1.6 percent on a year earlier. That was down from 2.1 percent in November and well below the ECB's target of just under 2 percent.

Inflation could now possibly be close to zero in the spring, analysts are saying, piling the pressure on the ECB to slash rates in the coming months by a further 150 basis points to 1%.

The ECB meets to discuss rates next week. Markets have largely priced in a 50 basis point cut, with some investors betting on a 75 basis point move after the last such reduction in December.

The pound currently stands around 1.09 against the euro.