The euro weakened for a third day against the dollar, the longest losing streak in almost a month, after data showed European manufacturing shrank and unemployment rose in Germany, adding to concern the debt crisis will worsen.

The 17-nation currency dropped to a two-week low versus the yen on speculation European Central Bank President Mario Draghi will signal tomorrow policy makers are moving closer to cutting interest rates to spur growth. The dollar erased gains against the yen after private data showed U.S. companies added fewer workers than forecast in April, boosting bets the Federal Reserve may keep accommodative monetary policy in place longer.

“We have very bad purchasing-manager indexes and the first sign that Germany is cracking,” said Boris Schlossberg, director of research at the online currency trader GFT Forex in New York. “The gangrene has spread from the periphery to the core. If Draghi hints that there will be more easing to come, the euro may be vulnerable and fall to the $1.30 level.”