LONDON—The euro slipped from two-week highs on Wednesday, as investors braced for a crucial European Central Bank policy meeting on Thursday after policymakers floated the prospects of a 50 bps interest rate hike.
The single currency has rallied more than 3 percent in the last four trading sessions on expectations the European Central Bank (ECB) could deliver a big 50-bps rate hike.
But investors’ mood turned sour on Wednesday with European stock markets in the red and U.S. stock futures pointing to a rocky start and weighing on the single currency.
“Fears appear to be rising again about Russian gas supplies to Europe and the potential for a deep recession there, and this downbeat sentiment has seen safe haven assets in the ascendancy again,” said Stuart Cole, chief macro economist at Equiti Capital in London….