1525 GMT [Dow Jones]--Despite a downward surprise in euro-zone inflation and increasing speculation that the ECB will take significant steps to ease policy Thursday, the euro is higher on the day against the dollar. EUR/USD is now at 1.3627 from an opening level around 1.3600. "EUR strength counts as a mystery," says Steven Englander, currency strategist at Citigroup. Given comments from ECB Board members and the increasingly tight link drawn between low inflation and the EUR's level, he adds, the euro should have responded more dramatically. Citi points to the correlation between CNY weakness and EUR strength. "We want to raise the possibility that CNY weakness, reserves accumulation and diversification may be adding support to euro," he says. (chiara.albanese@wsj.com @chiaraalbanese). ?
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(END) Dow Jones Newswires
June 03, 2014 11:25 ET (15:25 GMT)
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