Euro flat ahead of ECB meeting Currency markets were quiet on Tuesday as traders looked ahead to central bank meetings in Europe and the UK later in the week that could set the direction for the euro and risk appetite. The euro was flat against the dollar at $1.2580 after fading from its post-EU summit highs the previous day. Traders said that an expected 25 basis point rate cut by the European Central Bank was already priced into the euro, though some were predicting further measures, such as an extension of its longer-term refinancing operation, that could give risk appetite a boost. "The focus within markets has clearly shifted towards growth and the potential policy response from both governments and central banks," said Geoffrey Yu, foreign currency strategist at UBS. The yen stood out as one of the biggest movers, weakening against the dollar and the euro amid expectations the Bank of Japan will ease monetary policy further when it meets next week. The dollar rose 0.4 per cent to Y79.81 while the euro rose 0.4 per cent to Y100.41. Expectations for central bank easing in the UK were also weighing on the pound ahead of a Bank of England meeting, which will also take place on Thursday. Many predicted the BoE would add an extra £50bn of asset purchases to its government-bond buying scheme, with last month's meeting showing only a slim majority in favour of holding back from monetary easing. The pound was 0.1 per cent lower against the dollar at $1.5678 and 0.1 per cent lower against the euro at €1.2454. The Australian dollar was higher after the Reserve Bank of Australia held rates as expected at 3.5 per cent. Analysts are still predicting the country will see further interest rate cuts later this year as the central bank seeks to boost economic growth. The Australian dollar rose 0.1 per cent to $1.0264 and was 0.5 per cent higher against the yen at Y81.88.