The Dollar remained in the back foot as U.S. yields declined sharply this week on investor risk aversion and heightened prospects of the Federal Reserve cutting interest rates.

EUR/USD was fractionally higher at 1.1226, while USD/JPY slid lower on Thursday as safe haven demand continued to be underpinned amid trade tensions, as investors looked ahead to the European Central Bank’s latest policy decision later in the day. GBP/USD pair remains on the road to recovery as it trades near 1.2680, as light economic calendar shifts market focus on a speech by the BOE’s Carney at 09:00 GMT and trade developments.

Today's highlight is the ECB meeting, with a policy statement to be released at 11:45 GMT and a press conference at 12:30 GMT. Also, at 12:00 GMT the euro area GDP details for Q1 will be released.

In the US, the jobless claims at 12:30 GMT will attract attention ahead of tomorrow's NFP number amid contradicting labour market signals yesterday.

Oil prices firmed on Thursday after falling to near five-month lows in the previous session, but sentiment remained weak as markets remain under pressure from rising U.S. supply and a stalling global economy.

Prices of safe-haven gold rose for a seventh-straight day on Thursday, getting some residual support by expectations that the Federal Reserve will have to cut rates this year to maintain economic growth. Federal Reserve Chairman Jerome Powell said in a speech that the central bank will do what it takes to retain the near-record expansion of the U.S. economy, amid President Donald Trump’s trade wars.