The euro held onto gains against the dollar on Thursday as traders braced for a European Central Bank meeting to gauge policymakers’ views on the common currency’s recent appreciation and its impact on inflation.
Sterling steadied above a six-week low but could face more losses due to growing concern that Britain and the European Union will fail to agree a trade deal.
“The ECB is this week’s biggest event by far and there is a lot at stake,” said Masaru Ishibashi, joint general manager of trading at Sumitomo Mitsui Banking Corp.
The euro bought $1.1807 in Asia on Thursday, holding onto a 0.3% gain from the previous session.
The British Pound traded at $1.3307, recovering slightly from a dip to a six-week low of $1.2839 on Wednesday.