Sterling up on gains in Europe equities

London

GAINS in European equities helped to steady currency markets on Thursday as sterling edged up from lows and the US dollar trod water, with traders looking to Federal Reserve speakers later in the day for fresh direction on the US rates outlook.

Dealers said that there were signs of downward pressure building on the euro ahead of next month's European Central Bank meeting, at which rate-setters are widely expected to take more steps to ease monetary policy and bolster still very low eurozone inflation.