Euro slips to five-day low as investors eye ECB meeting

London

THE euro inched down to a five-day low on Wednesday, as investors eyed a meeting of the European Central Bank the next day that they expect will see policy kept loose despite rising inflationary pressures.

Market players also had their eyes on US labour market data due later in the day that should offer clues on Friday's closely watched non-farm payrolls report, though analysts said that was likely to have less of an effect on the dollar than usual. That is because the greenback has already rallied almost 2.5 per cent against a basket of major currencies over the past five weeks, hitting two-month highs, as investors have moved to price in around an 87 per cent chance of a US interest rate hike this month, up from around a 30 per cent chance.