Investing.com - The euro and the pound were little changed against the dollar on Thursday, as investors remained on the sidelines ahead of rate decisions by the European Central Bank and the Bank of England later in the session.
EUR/USD was trading at 1.3728, moving off the previous session’s lows of 1.3706.
The pair was likely to find support at 1.3685 and resistance at 1.3780.
The ECB was expected to hold off on cutting rates to fresh record lows but was expected to take other steps to tighten monetary policy, amid ongoing concerns over the subdued inflation outlook for the euro area.
Figures released last Friday showed the annual rate of inflation in the euro area remained unchanged at 0.8% in February, well below the ECB's target of just under 2.0%.
Data on Wednesday showing that euro zone private sector activity expanded at the fastest pace since June 2011 in February eased pressure on the bank to cut rates.
A separate report showed that euro zone retail sales rose more strongly than forecast in January, indicating that the recovery in the euro zone is improving.
The euro moved higher against the yen, with EUR/JPY climbing 0.40% to 141.03, extending its pullback from a trough of 138.77 reached last week as concerns over the crisis in Ukraine weighed.
GBP/USD was trading at 1.6721 ahead of the BoE’s rate announcement later Thursday. BoE officials, led by Governor Mark Carney were widely expected to leave rates on hold at 0.5%, marking five years of record low rates.
EUR/GBP was last trading at 0.8216, not far from Wednesday’s lows of 0.8203.