The US dollar edged higher against the euro as short-term players covered short positions ahead of the European Central Bank's policy meeting later today and weakened slightly against the yen on some expectations building up that the US Federal Reserve may soon end its rate hike campaign, dealers said.The ECB is widely expected to hike its key interest rate by 25 basis points to 3.00 pct. "While the euro succumbed to technically-driven selling ahead of today's ECB meeting, it is most likely to resume an upward momentum sooner rather than later, once ongoing position-adjustments run out of steam," Sumitomo Mitsui Banking strategist Daisuke Uno said. "Sentiment towards the dollar has turned bearish due to mounting concerns that the Federal Reserve will soon pull the plug on its prolonged rate hike campaign," Uno added. Traders were generally cautious ahead of the release tomorrow of the US nonfarm payroll data for July, which may be what the market needs to have a clearer gauge on whether the Fed will hike rates again on Aug 8.