Euro steady ahead of ECB, while sterling slides
On Monday the euro was holding steady as investors looked ahead to a European Central Bank meeting later this week, at which new stimulus is expected.
The ECB is all but certain to approve new stimulus measures on Thursday to boost an ailing economy, but the exact composition of the stimulus package is still unclear. While an interest rate cut seems like a done deal the big question is whether a resumption of asset purchases will be part of the package after some policymakers said it would be premature. The euro was little changed at 1.1029 03:41 AM ET (07:41 GMT) after falling 0.1% on Friday.
Heightened expectations for ECB easing come as other global central banks move to ease monetary policy. People's Bank of China, which on Friday cut the amount of cash that banks must hold as reserves.
Policymakers are rushing to bolster growth as a wide-ranging dispute between the United States and China over trade policy drags into a second year, increasing the risk of recession. The U.S. Federal Reserve will continue to act "as appropriate" to sustain the economic expansion in the world's biggest economy, Fed Chair Jerome Powell said Friday in Zurich, confirming expectations for a rate cut at the Fed's next policy decision on Sept. 18.
Meanwhile, the British pound was pressured lower by Brexit uncertainty. Sterling traded at 1.2254, down 0.2% for the day. The dollar traded at 106.97 yen, little changed from Friday. The U.S. dollar index against a basket of six major currencies was little changed at 98.40.