2018.06.0601:07:00UTC+00Euro on Steady Footing; NAFTA Concerns Hit Loonie, Mexican Peso

The euro held steady on Wednesday as investors began to focus on the European Central Bank's policy meeting next week, while worries that the U.S. could withdraw from its trade agreement with Canada and Mexico affected their currencies.

The common currency traded at $1.1719 having risen around 0.5 percent so far this week and remaining around two cents above its 10-month low of $1.1510 set on May 29.

Market players said the euro received support on Tuesday after a Bloomberg report cited sources stating that the ECB could end its next policy meeting this June with a public announcement on when its quantitative easing program would be completed.

Majority of traders have thought the central bank would prevent triggering a ripple at its next policy meeting on June 14 given the uncertainty brought by the Italian political condition.

The report came after a speech by Italy's new PM Giuseppe Conte, whose pledge of radical change had mixed effect on the euro. The euro rose to a two-week high of 128.91 in early Asian trade.

Meanwhile, the dollar traded at 109.85 yen, after climbing to 110.01 yen the prior day. It had extended a recovery from a five-week trough of 108.115 on May 29 on easing worries regarding political instability in Europe.

The sterling pound was steady at $1.3401 after rising 0.62 percent on Tuesday on solid UK service sector survey, also continuing its recover from a six-month low of $1.3205 hit on May 29.

The Canadian dollar and the Mexican peso came under renewed pressure after Trump administration economic adviser Larry Kudlow said that President Donald Trump is considering holding separate talks with Canada and Mexico.

The Canadian dollar had declined to a 2-½ month low of C$1.3068. The Mexican peso reached a 15-month low of 20.4705 peso to the dollar and last traded at 20.4075 peso against the dollar.