The euro firmed a touch on Thursday ahead of the European Central Bank's (ECB) policy meeting, where traders will focus on rate setters' remarks on their future path as a cut at this meeting is a done deal.

Central banks were in focus, as they have tended to be in recent months, with the Canadian dollar firming a little after having weakened into the Bank of Canada's Wednesday meeting when it cut its key policy interest rate as widely expected. The currency was last at C$1.3679 per dollar.

Markets are now pricing in nearly 50 basis points of Fed rate cuts this year, with the first expected to come in September.

The ECB remains the day's focus, and the euro gained 0.11% to $1.0882, sitting just shy of a two-and-a-half month top of $1.0916 hit earlier in the week.

The euro was also a fraction firmer on the pound at 85.03 pence though towards the bottom of its recent range.

Versus the dollar, sterling was up a whisker at $1.2795.

Elsewhere, the yen was steady on the day at 156.15 per dollar, as investors digested Thursday remarks from Bank of Japan Governor Kazuo Ueda that it would be appropriate to reduce the central bank's bond buying as it moves toward an exit from massive monetary stimulus.

Source : Reuters