Investing.com - The euro was steady against the other major currencies on Thursday as investors looked ahead to the European Central Bank’s monetary policy announcement later in the day.
EUR/USD was trading at 1.3149, holding above the one year low of 1.3109 set on Tuesday.
The pair was likely to find support at the 1.3100 level and resistance at around 1.3195.
The euro has come under heavy selling pressure in recent sessions amid mounting expectations that the ECB will announce quantitative easing measures as a way to shore up growth after the annual rate of euro area inflation slowed to a five year low of 0.3% last month.
The ECB targets an inflation rate of close to but just under 2%.
Data on Wednesday showed that activity in the German and French service sectors slowed in August, while Italy’s service sector contracted, adding to pressure on the bank to act.
Concerns that sanctions against Russia would act as a drag on growth in the euro zone have also weighed on the single currency.
EUR/JPY was flat at 137.85, while EUR/GBP was at 0.7990.
Elsewhere, the dollar edged higher against the yen, with USD/JPY edging up 0.07% to 104.85.
The dollar ended Wednesday’s session lower against the yen as investor took profits following a rally in the greenback, which propelled it to eight month highs against the yen.
Expectations that the Federal Reserve is growing closer to raising interest rates have boosted the dollar against the euro and the yen, as the European and Japanese central banks look likely to stick to a looser monetary policy stance.