Euro extends losses, hits 3-week low vs dollar, pound

LONDON, Jan 6 (Reuters) - The euro fell to a three-week low against the dollar and sterling on Tuesday on speculation that the European Central Bank will cut interest rates further as regional price pressures ease amid broad economic weakness.

In early London trade, the euro EUR= fell around 0.9 percent to $1.3450 according to Reuters data, sliding to its weakest level since mid-December. The pair reversed a climb to a near three-month high around $1.4700 last month.

Against sterling EURGBP=, the single European currency fell to 92.04 pence, its lowest since Dec. 17.

"A lot of the move is now coming from the euro side of the equation," said Ian Stannard, senior currency strategist at BNP Paribas in London.

"With the situation in Europe deteriorating quite rapidly it leaves the euro quite vulnerable."

(Reporting by Veronica Brown and Naomi Tajitsu)