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Euro slightly up ahead of ECB meeting

The euro strengthened slightly on Wednesday ahead of the European Central Bank's policy meeting, with analysts mixed over whether it will add to stimulus efforts for the eurozone.

NEW YORK: The euro strengthened slightly on Wednesday ahead of the European Central Bank's policy meeting, with analysts mixed over whether it will add to stimulus efforts for the eurozone.

Meanwhile, the pound stabilised after sinking on Tuesday on polls that showed increasing support in Scotland for independence from Britain.

ECB policymakers meet on Thursday confronted by a deteriorating eurozone economy, with production slowing and inflation near a standstill.

In the United States last month, ECB chief Mario Draghi hinted at a possible quantitative easing programme - buying up securities from the market to inject cash into the financial system and drive down interest rates to spur more activity.

But no one was sure whether the central bank was ready to take that step now. "Even as the evidence of economic deterioration stacks up, we think that the ECB will err on the side of caution and avoid announcing its first QE program," said Kathleen Brooks at Forex.com.

The euro may also have earned some modest support from news of a possible truce deal between Kiev and Moscow in the fighting in eastern Ukraine.

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