Investing.com - The euro slid lower against the other major currencies on Thursday as investors braced for big moves in the currency later in the day at the outcome of the European Central Bank’s monetary policy review.
EUR/USD was down 0.29% to 1.0967, while EUR/JPY eased 0.22% to 124.39.
Most analysts expect the ECB to announce fresh measures to combat deflation in the euro zone, after consumer price inflation turned negative again last month, falling 0.2%.
The ECB targets inflation of close to, but just under 2%.
The bank was expected to cut interest rates further into negative territory and to step up its asset purchasing program.
The ECB has already cut its deposit rate to minus 0.3% and is pumping €60 billion a month into the economy via asset purchases.
But investors remained wary after the bank disappointed market expectations for more quantitative easing at its December meeting, sending the euro surging higher.
The euro was also weaker against the pound, with EUR/GBP down 0.53% to 0.7710.
Also Thursday, British Prime Minister David Cameron warned that a U.K. exit from the European Union would put pressure on sterling.
The pound was little changed against the dollar, with GBP/USD at 1.4219, holding above the seven-year trough of 1.3835 hit late last month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 97.39, boosted by weakness in the euro.