By William L. Watts, MarketWatch LONDON (MarketWatch) -- The euro and the British pound were slightly lower versus the U.S. dollar ahead of policy announcements by the Bank of England and the European Central Bank. Bull trends remain intact for the euro, the British pound and Pacific Rim currencies, "but risks of profit-taking have increased," wrote strategists at UniCredit MIB in Milan. "The ECB and BoE meetings may spark some volatility, but investors should stay cautious" ahead of Friday's U.S. non-farm payrolls report for July. The euro bought $1.4379, down from $1.4432 in late North American trading on Wednesday, and the pound was at $1.6968, down from $1.7020. The Bank of England and the European Central Bank both conclude regular policy meetings later in the day, with both widely expected to stand pat on interest rates. Signs that the British economy could pull out of recession by year's end are feeding expectations that the central bank will put its 125-billion-pound ($211 billion) asset-purchase program on hold, instead of extending the quantitative easing. See full story on Bank of England. One dollar bought 95.54 yen, up from 94.99 yen late Wednesday. The dollar index (DXY 77.80, +0.28, +0.36%) , which tracks the U.S. unit against a trade-weighted basket of six major currencies, was at 77.717, up from 77.515 late Wednesday. Looking further ahead, investors were awaiting the U.S. government's monthly report on nonfarm payrolls for July, due out Friday. Economists surveyed by MarketWatch expect a loss of 275,000 jobs, which would be the fewest jobs lost since August.

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