FOREX-Data piles pressure onto euro, dlr awaits Fed

(Changes byline, adds quotes, updates prices)

By Toni Vorobyova

LONDON, April 30 (Reuters) - The euro fell to a four-week low against the dollar on Wednesday as weak euro zone sentiment data and slowing inflation raised expectations that the European Central Bank may ease up on its hawkish rates stance.

In contrast, although the U.S. Federal Reserve is widely seen cutting rates to 2 percent later in the session, many reckon it may signal a pause in its 8-month-long aggressive easing cycle, thus ending erosion of the dollar's yield.

Such expectations, coupled with signs that the euro zone may not be able to avoid the global slowdown, have put the dollar on track for its first monthly gain versus the euro since October and its biggest percentage rise in 11 months.

"We had data from the euro zone with the CPI slightly on the downside, so there is a bit less strength in the euro, and at the same time in the dollar we are waiting for the Fed," said Carole Laulhere, FX strategist at Societe Generale in Paris. "I don't think they are very weak figures but...it shows that activity may be taking a break in the euro zone in coming months...So we think that the ECB may be a bit less hawkish."

By 1019 GMT, the euro was down 0.2 percent at $1.5536, about 10 ticks away from an earlier four-week low <EUR=>. It was 0.1 percent softer versus the yen <EURJPY=> and sterling <EURGBP=>.

Annual euro zone inflation slowed more than expected in April to 3.3 percent, data on Wednesday showed, still well above the ECB's 2 percent target ceiling.

At the same time, the European Commission's economic sentiment indicator fell more than expected to 97.1 -- its weakest since August 2005 and a further sign of that the euro zone is falling prey to the U.S.-led global slowdown.