Euro Falls on German Services as Krona Hits 12-Year High

The euro weakened after German services contracted last month, adding to speculation the European Central Bank will reduce interest rates tomorrow.

The shared European currency dropped versus 12 of its 16 major counterparts as a report showed euro-area services and manufacturing output shrank for a fifth month in June. Sweden’s krona strengthened to the highest level against the euro since December 2000 after the central bank kept rates unchanged, with some economists predicting a cut. U.S. markets were shut for the Independence Day holiday.