The euro hit a near nine-year low on Monday as markets bet the prospect of inflation across the region turning negative and political uncertainty in Greece will force the European Central Bank to launch quantitative easing.
European shares were under pressure after the Athens bourse slumped again and, amid yet another hefty slide in oil prices,
Wall Street was expected to open lower too .
The euro fell as low $1.18605 U.S. overnight, its weakest level since March 2006, and was struggling at $1.1895 U.S. as trading stateside began to gather momentum.
Investors taking a punt that the ECB will open up a bond-buying program as the U.S., U.K. and Japanese central banks have done were emboldened by an interview with ECB president Mario Draghi in German paper Handelsblatt on Friday.
He said the risk of the central bank not fulfilling its mandate of preserving price stability was higher now than half a year ago.
German regional inflation figures saw more weakness in December, adding to the downward pressure on the euro and government bond yields before Wednesday's euro-zone estimate.
Economists forecast that euro zone consumer prices fell 0.1% in December, the first decline since 2009. That should fan expectations the ECB will ease at its first policy meeting of the year on Jan. 22.
