NEW YORK, Jan 7 (Reuters) - The euro pared losses to trade little changed against the dollar on Monday as the New York session began with investors adjusting positions ahead of a European Central Bank policy meeting later in the week.
Analysts said the euro was more likely to remain under pressure as markets refocus on the euro zone’s debt crisis with any indication of monetary stimulus or comments on economic weakness seen pushing it lower.
But some investors speculated there was too much bearishness and that if the ECB was not too negative, the euro could rally.
Currency speculators became net buyers of the euro for the first time since August 2011 in the week to Dec. 31, according to data from the Commodity Futures Trading Commission released on Friday.
The euro was last down 0.05 percent at $1.3057, well off the session low of $1.3016.