European shares and the single currency edged lower after three days of solid gains on Wednesday as investors await the next moves by central banks to tackle declining global growth and Europe's fiscal crisis.
Risky assets began rising on Friday after U.S. jobs data eased concerns over global growth but kept hopes intact for a further policy easing by the Federal Reserve next month. Markets were also lifted by last week's pledge by European Central Bank President Mario Draghi to ease borrowing costs for Spain and Italy.
"There's been a reassessment of risks in recent days," said Ric Spooner, chief market analyst from CMC Markets.
The focus switches to the Bank of England on Wednesday, which is expected to sharply lower its growth and inflation forecasts for the recession-hit UK economy, opening the door for a policy easing move later in the year.
The euro drifted down 0.2 percent to $1.2375, not too far from a one-month high of $1.2444 hit on Monday.
The FTSEurofirst 300 index of top European shares was down 0.3 percent at 1,090.82 in early trading, having closed 0.8 percent higher on Tuesday to reach its highest closing level since March 19.
Debt markets steadied, with investors awaiting the German government's 10-year bond sale, which will gauge investor appetite for safe-haven assets following Draghi's promise to defend the single currency.
