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• The dollar was holding steady near three-and-a-half month highs against a basket of the other major currencies on Thursday, supported by higher Treasury yields as the U.S. 10-year bond yield held above the 3% level.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading at 91.02 by 03:45 AM ET (07:45 AM GMT), within close reach of Wednesday’s highs of 91.04, the most since January 12.

EUR/USD back down to 1.2166 after hitting session highs of 1.2188. Meanwhile, cable has also fallen to be flat on the day with other major currencies also surrendering earlier gains against the dollar.

Ranges remain relatively tight though on the day, with the market still searching for clues as we await the ECB meeting later in the day. This was the snapshot before the start of European trading.

• The European Central Bank is set to keep policy unchanged at its monetary meeting on Thursday, playing down worries over recent softness in the euro zone economy and leaving the door open to ending its lavish bond purchase scheme by the close of the year.

• ECB President Mario Draghi may argue that growth is still solid and could point to higher oil prices and some improvement in underlying inflation.

But he is likely to steer clear of commentary about future policy moves, keeping the bank’s options open regarding its quantitative easing (QE) program and what would be its first rate hike since 2011 in case the outlook continues to soften.

Economists polled by Reuters still expect bond purchases to end this year after a short taper and see the first rate hike in the second quarter of 2019, but some have started to flag risks of a delay.

• Japanese Prime Minister Shinzo Abe said on Thursday that he was “not considering at all” calling a general election now, while pledging to do the utmost to clarify facts over scandals including document alterations related to a controversial sale of public land.

• Westpac Analysts offer a brief preview of today’s European Central Bank (ECB) monetary policy decision due to be announced at 1145 GMT, which will be followed by Draghi’s press conference at 1230 GMT.

Key Quotes: “Increasingly, it is becoming evident that Euro Area growth is past its peak.

The outlook for the ECB will depend heavily on the pace of slowing seen across the region. If inflation is to move towards trend, then above-trend growth must persist throughout the forecast period.

While not anticipating a collapse in growth by any means, we continue to believe that remaining slack in the Euro Area combined with a softening growth pace (from 1.25ppts above trend in 2017 to closer to 0.25ppts in 2019).

To our mind, this will not be enough to drive inflation to target but will see it move closer than it has been.

• The European Central Bank (ECB) is set to hold steady this week as recent economic indicators point towards a slowdown of the euro zone economy. Speculation is also rising that the ECB is considering pushing the end of its quantitative easing (QE) program further into the future.

"We expect no policy actions and a broadly unchanged language at the ECB's policy meeting (Thursday)," Dirk Schumacher, research analyst at Natixis, said in a note last week. "We expect, however, a hint for a decision on the asset purchase program (APP) at the June meeting."

• U.S. intelligence experts are trying to build a profile of Kim Jong Un to give President Donald Trump a competitive edge in one of the most consequential summits since the Cold War, but they face a huge challenge – figuring out a secretive North Korean ruler few people know much about.

• Deutsche Bank (DBKGn.DE) announced cutbacks to its bond and equities trading on Thursday in a major overhaul of its troubled investment bank, after posting a 79 percent drop in net profit in the first quarter.

• South Korean President Moon Jae-in will meet North Korean leader Kim Jong Un on Friday as the latter crosses a military demarcation line to the South for the first summit between the two sides in more than a decade, South Korea said.

South Korean honour guards will then escort the leaders to a welcome ceremony at a plaza in Panmunjom, the border village where the summit is to be held, the South's presidential chief of staff, Im Jong-seok, told a media briefing.

Official dialogue between Kim and Moon will begin at 10:30 a.m. (0130 GMT) at the Peace House in Panmunjom, an hour after Kim is scheduled the cross the border at9:30 a.m. (0030 GMT).

• Oil prices rose on Thursday, supported by expectations the United States will re-impose sanctions against Iran, a decline in output in Venezuela and ongoing strong demand.

Brent crude oil futures LCOc1 were at 74.27 per barrel at 0643 GMT, up 27 cents, or 0.4 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were up 14 cents, or 0.2 percent, at $68.19 per barrel.