LONDON (AFX) - The euro was lower against most leading currencies in early trade, as the latest data provided further evidence that the euro zone will not escape unscathed from the U.S. slowdown, dealers said. Sahab Jalinoos, currency strategist at UBS Warburg, said: "We see the move as a correction within the longer-term downtrend in the euro." He said today's German labour data added to evidence that the largest European economy is slowing, with unemployment rising for the third consecutive month. "German unemployment data was disappointing and that is bad news for the single currency. The economic outlook in Europe is not as as positive as the market has been pricing in," Jalinoos said. "All that together makes us think that the euro has more downside," he said. In adjusted terms, the jobless total for Germany rose 12,000 in March from February, was up 6,000 in western Germany and up 5,000 in eastern Germany. However, Bundesbank president Ernst Welteke's comments in an interview with Focus Money suggested he is not satisfied with the value of the euro, after the currency failed to fulfil hopes of a strong rally against the dollar in the early part of this year. The euro is "clearly undervalued", he said. Commenting on the dollar, Jalinoos said there was disappointment in the U.S. stock markets and in the U.S. interest rate outlook after Monday's relatively strong NAPM numbers. "Disappointment has led to big losses in the U.S. stock market, and by extension has filtered out onto the dollar as well," he said. Sterling tracked the euro higher in early trade. "Euro/sterling moved higher, which is a sign that is is not just a sterling strength," Jalinoos said.