Euro stays down in London

The euro held near a one-month low against the dollar on Friday after sliding the previous day on signs the European Central Bank would be modest in raising interest rates this year.
The ECB raised rates by 25 basis points to 2.75 percent on Thursday, disappointing those who had expected a rise of 50 basis points, and appeared to rule out the possibility of cranking up the pace of future rate increases.
The dollar's gains against the euro also took it to a six-week high versus the yen and a one-month peak against the pound on Thursday, but analysts said US trade data due later in the day could dent the dollar's climb.
"The euro has settled into ranges ahead of US trade data. We had expectations the ECB might send clear signals on rate hikes but they didn't so the market was disappointed," said Adam Cole, senior currency strategist at Royal Bank of Canada Capital Markets.
"The market is looking for the next catalyst to sell dollars. The market has pretty much priced in the next (Fed) hike in June so the interest rate story has run its course."
By 1140 GMT, the euro held steady on the day at $1.2650, near the one-month low of $1.2624 set on Thursday.
The dollar was slightly down at 113.98 yen after hitting a 6-week high of 114.72 yen the previous day.
The euro was down 0.2 percent on the day at 144.24 yen. It hit a record high of 145.70 yen Thursday.
The yen was helped by a recovery in Japanese stocks after a sharp sell-off a day earlier and after data showing a strong rise in Japanese machinery orders in April.
Analysts say US data at 1230 GMT, which is expected to show the deficit widened in April, could revive worries that a weaker dollar is needed to correct it by making US exports more competitive on international markets.
Global trade imbalances will also be in the spotlight as a two-day meeting of finance ministers from the Group of Eight begins on Friday in St. Petersburg.
The US deficit is forecast to have expanded to $65 billion in April after shrinking to $62 billion the previous month, a seven-month low.
"(An expected widening in deficit) will largely be a function of a rise in the energy import bill and a dip in the volatile aircraft shipments component," HBOS Treasury Services said in a note to clients.