LONDON (AFX) - The euro firmed against the dollar in early trade following Wall Street's overnight slide and on expectations that equities will fall further today, dealer said. "It's an equities story again today. Stock futures are looking pretty soft and the dollar is looking soft as well," 4Cast currency strategist Paul Bednarczyk said. Dealers said however that the euro could have trouble breaking through the 0.9875 usd barrier today, particularly if the closely-watched German ZEW economic expectations indicator is weak. An AFX News consensus of economists' forecasts is for the index for July to fall to 66.5 from 69.6 in June. "With only limited near-term pressure expected on the dollar, risks in euro/dollar are to the downside towards 0.98 usd," WestLB's Michael Klawitter said. "Apart from the uncertainty about the euro zone's fiscal performance, the deteriorating situation in Turkey and the possible impact on the EU banking system may also weigh on the exchange rate," he said. Otherwise, dealers noted yesterday's move by Japanese finance minister Masajuro Shiokawa to dampen speculation that Japan would tolerate a stronger yen. In the UK, sterling is not expected to be affected by UK trade figures, due for release this morning.