Euro extends losses as data, banks dent confidence

LONDON, April 29 (Reuters) - The euro fell sharply in early European trading on Tuesday, falling to its lowest in four weeks as weak sentiment data and poor results from Deutsche Bank dented confidence on the European economy.

By 0813 GMT the euro had fallen as low as $1.5542 EUR=, its lowest since April 3.

"The Deutsche Bank results are highlighting that credit market problems are not exclusively a U.S. problem," said Adam Cole, global head of currency strategy at RBC Capital Markets.

"It looks as though the U.S. is further advanced in the economic cycle and so closer to the recovery phase."

Traders said investors were also covering short dollar positions ahead of the Fed meeting where rates are seen being cut to 2 percent from 2.25 percent FEDWATCH.

(Reporting by Naomi Tajitsu and Simon Falush)