Euro consolidated losses in the Asian session after dropping over half a percent against the dollar yesterday. EURUSD traded a range of 1.2511 and 1.2537 during a quiet session, most market participants waiting on the sidelines ahead of the European central bank policy meeting later today. Expectations are for at least a 25 basis point rate cut. A bond sale by Spain will also be in focus in the European session.
Sterling maintained a three-day slide on speculation that the Bank of England will extend its called quantitative easing program at its policy meeting later today. GBPUSD opened in Asia at 1.5579 and traded sideways, capped below 1.5596.
Yen touched the lowest versus the dollar in more than a week before erasing losses as Asian shares declined. USDJPY briefly rose to a high of 80.08 from the open of 79.84 but soon fell back close to where it opened. Euro mirrored the same movement, rising to 100.32 yen before falling back to 99.91.
Aussie extended its decline due to profit taking after hitting a two-month high yesterday. AUDUSD opened in Asia at 1.0273 and edged down to 1.0241.