Euro resumes gains before ECB decisions

Euro rose in European trade against dollar on improved risk appetite in the markets after President Joe Biden promised more stimulus to support the US economy.

EUR/USD rose 0.3% to 1.2138, after closing down 0.2% yesterday, the first loss in three days after weak inflation data for Europe. 

The dollar index fell 0.25% on Thursday against a basket of major rivals as haven demand declines on the greenback. 

US stimulus prospects are bolstering global sentiment as the world recovers from the coronavirus pandemic.

The European Central Bank is meeting today to discuss policies and decide on interest rates.

ECB President Christine Lagarde will speak later on 13:30 GMT, and we note the ECB decided at the last meeting to increase its bonds purchases program by 500 billion euros to a total of 1.85 trillion a month, 

Lagarde said back then she expects the European GDP to shrink in the last quarter of 2020, with risks still posing for regional performance.