Weak data all but erase euro's QE3 gains The euro fell below $1.30 against the dollar, erasing nearly all of its euphoric gains following the Federal Reserve's decision to ease monetary policy further, amid concerns over both European and global economic growth on Thursday. The shared currency dipped 0.6 per cent to $1.2941 after flash purchasing managers" indices from Markit showed that eurozone growth had fallen to its lowest level since June 2009. A successful Spanish bond auction failed to have a significant impact on the euro after Spain raised more than expected in its largest auction in six months, attracting €4.8bn from investors - above the €4.5bn target. Analysts warned that even a successful auction could add to investor uncertainty, with demand for Spanish debt widely seen as a clue to how soon Spain was likely to request a bailout. "We suspect that the euro need not benefit much even if the auction results point at sustained investor demand," said analysts at Citigroup. This could reduce the chances of a bailout request ahead of the all-important EU summit on October 18. The pound clawed back some earlier losses after UK retail sales rose 3 per cent in August on an annual basis and 0.2 per cent from the previous month, with part of the rise attributed to purchases of sporting goods following the Olympics and football shirts ahead of the European Championships. Sterling was later 0.1 per cent weaker against the dollar at just under $1.62, having earlier hit a session low of $1.6164. Currencies associated with risk appetite had already been falling in response to signs of further economic slowdown in China, with an HSBC flash PMI index showing that China's manufacturing industry was still in decline this month. The Japanese yen strengthened further on risk aversion after figures showed that exports fell almost 6 per cent in August from the previous year, highlighting the struggling Japanese economy. The dollar hit a low of Y78.04 against the yen, continuing to erase gains after the Bank of Japan added to its monetary easing programme the previous day. Meanwhile, the euro fell more than 0.1 per cent to SFr1.2080 in what analysts warned was a sign of investor attitudes towards the eurozone. "The current moves in the euro-franc are a good indicator of the perception of the eurozone crisis," said analysts at Commerzbank. When the crisis eased the euro-franc experienced something of a revival. Now that concerns (about Spain) are rising the pair is heading south again.