Euro Bounces Off Year-To-Date Low Ahead of ECB Rate Decision

The Euro is struggling to hold onto its modest gains against the Yen, trading around 178.75 as traders wait for the European Central Bank's (ECB) rate decision on Thursday.

A 25-basis-point hike is expected, but investors are more interested in the central bank's longer-term policy path due to persistent inflationary pressures.

The Eurozone's annual inflation rose to 3.3% in August, up from 2.9% in July, and energy prices remain a concern due to tensions in the Middle East.

ECB President Christine Lagarde's comments will be crucial in influencing the Euro, and investors are currently bearish on the US Dollar, lending some support to the Euro.