EUR traded mixed against other major currencies in the European session on Wednesday, as investors remained cautious ahead of the European Central Bank's (ECB) policy meeting on Thursday, at which its policymakers are to review the bank’s massive stimulus measures.

The single European currency rose against AUD, and CAD, declined against USD and JPY, and changed little against GBP, CHF and NZD.

There are speculations that the ECB may announce a reduction of its emergency asset purchases tomorrow. Analysts polled by Reuters forecast the PEPP purchases are likely to decline to EUR60 billion a month from the current EUR80 billion, before a further decrease early next year and the program's end in March.

Market participants also digested the latest comments by the ECB’s policymakers. The central bank's governing council member Robert Holzmann said he saw the possibility that the ECB might be able to normalize monetary policy sooner than most financial market experts expect. Meanwhile, another ECB official Boštjan Vasle stated that in his view the Eurozone still needs a “highly accommodative” monetary policy. He also warned that the new waves of the coronavirus pandemic might slow the region’s economic recovery.