FOREX-Euro holds gains as traders brace for ECB meeting

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Further euro gains depend on tone of ECB meeting
* Pound has been rattled by Brexit concerns
* Dollar traders looking at U.S. tech stocks for clues

By Stanley White
TOKYO, Sept 10 (Reuters) - The euro held onto gains against
the dollar on Thursday as traders braced for a European Central
Bank meeting to gauge policymakers' views on the common
currency's recent appreciation and its impact on inflation.
Sterling steadied above a six-week low but could face more
losses due to growing concern that Britain and the European
Union will fail to agree a trade deal.
While markets expect the ECB to keep policy steady,
investors will closely watch President Christine Lagarde's
comments on how the euro's rise to a two-year high this month
affects the outlook for inflation and economic growth.
"The ECB is this week's biggest event by far and there is a
lot at stake," said Masaru Ishibashi, joint general manager of
trading at Sumitomo Mitsui Banking Corp.
"Most recently, the ECB downplayed inflation, but I want to
see how Lagarde will approach this in her press conference. This
will determine which way the euro goes."
The euro EUR=D3 bought $1.1807 in Asia on Thursday,
holding onto a 0.3% gain from the previous session.
The British pound GBP=D3 traded at $1.3307, recovering
slightly from a dip to a six-week low of $1.2839 on Wednesday.
The pound EURGBP=D3 also pulled back from a six-week low
against the euro to trade at 90.79 pence.
Sentiment for cable has taken a hit after Britain unveiled
draft legislation that analysts say raises the possibility of it
exiting the EU single market in four months time with no trade
agreement in place. The dollar held steady against the safe-harbour Swiss franc
CHF=EBS at 0.9120 and was little changed at 106.20 yen
JPY=D3 .
The euro got a boost on Wednesday after Bloomberg News
reported that ECB officials are growing more confident in the
bloc's economic outlook.
However, traders may be reluctant to buy the common currency
further before the ECB meeting due to earlier media reports that
officials are growing uncomfortable with the euro's almost 6%
appreciation against the dollar from its June low.
The ECB's views are also in the spotlight after euro-zone
consumer prices turned negative in August for the first time
since 2016, and the U.S. Federal Reserve switched to focusing on
average inflation.
With no major economic data scheduled during Asian trading,
market moves could be subdued as investors wait for potential
ECB catalysts.
Traders in the dollar are closely watching global equities
to see if a rebound in U.S. tech shares from a rapid sell-off
will support riskier assets in other markets.
The dollar index =USD against a basket of six major
currencies slipped 0.3% to 93.261.
Elsewhere, the Australian dollar AUD=D3 edged slightly
lower to $0.7275 as investors nervously monitor an outbreak of
coronavirus infections in the state of Victoria.
Across the Tasman Sea, the New Zealand dollar NZD=D3 was
little changed at $0.6680.