LONDON (AFX) - The euro drifted lower in early trade as the European Central bank once again left investors puzzled, dealers said. "The market is somewhat concerned by the admission from the ECB (yesterday) that they have made an even greater (positive) error in their calculation of M3 figures of up to 1 percentage point, against the 0.5 which they previously said," Neil Parker, a strategist at Royal bank of Scotland said.
"This led the market to believe that more cuts were on the way as could be assumed, but then they came out and said they won't be cutting, leaving the market confused," he added.
Dealers said that an expected decrease in the weight of European shares in the Morgan Stanley Capital index to be announced tomorrow was also undermining sentiment for the single currency.
Sterling also drifted lower tracking the euro, dealers said. "There is nothing going on in sterling, neither technically or fundamentally," Parker said.