Forex - Euro, Sterling Drift Ahead of ECB, BoE News

By Peter Nurse - The dollar edged lower in early European trade Thursday, ahead of two major monetary developments in Europe. The European Central Bank will announce the results of its latest long-term lending operation, which is the first at which banks can borrow at the new lower limit of as low as 1%. Given the doubts over the effectiveness of negative interest rates, a high take-up would constitute a vote of confidence in the ability of the ECB to keep supporting the economy through monetary policy (and vice versa). ECB board member Isabel Schnabel last week trailed expectations of around 1.4 trillion euros in demand.