Forex - EUR/USD near 2-1/2 week lows on ECB speculation

The euro was trading near two-and-a-half week lows against the U.S. dollar on Friday, weighed by fresh expectations for the European Central Bank to implement fresh stimulus measures in order to bolster growth. 

EUR/USD hit 1.3540 during late Asian trade, the pair's lowest since October 17; the pair subsequently consolidated at 1.3560, slipping 0.17%. 

The pair was likely to find support at 1.3480, the low of October 15 and resistance at 1.3682, the high of October 17. 

The euro remained under pressure after on Thursday data showing that euro zone inflation fell to a four year low in October sparked concerns over the risk of further rate cuts by the ECB.

Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September. 

A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September. 

Meanwhile, a string of positive U.S. data supported demand for the dollar. On Thursday, data showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October, while a separate report showed that U.S. initial jobless claims fell in line with expectations last week.

The euro was fractionally lower against the pound with EUR/GBP edging down 0.08%, to hit 0.8462. 

Later in the day, the U.S. was to release a report from the Institute of Supply Management on manufacturing activity.