Euro edges down as eyes fall on central banks

The shared currency of the European Union slipped on Wednesday against the world's reserve currency as analysts, traders and investors waited on action by global central banks, according to Reuters.

As the pace of global growth slows and the sovereign debt crisis continues in the euro zone, market participants are looking to the European Central Bank and the U.S. Federal Reserve for various methods of intervention. President Mario Draghi of the ECB said last week that his efforts are driven toward lowering Spanish and Italian borrowing costs.

"Sentiment is still broadly cautious - people realize there are still a lot of hurdles to be overcome. But investors can't ignore potential stimulus from central banks and what impact that's had on stock markets in the past," equity analyst Keith Bowman with Hargreaves Lansdown told Reuters.

The U.S. Federal Reserve is believed to be preparing to deploy additional policy easing to spur the globe's largest economy, such as a third round of quantitative easing.

Industrial output in Germany dropped in June, which also drew down the value of the euro against the Japanese yen and the U.S. dollar on Wednesday, according to Bloomberg.