The EUR gained against the U.S dollar Thursday before a report forecast to show German industrial output rose for a second month, boosting demand for higher-yielding assets. The British pound dropped for a 5th day against the U.S Dollar, falling to $1.5891, from $1.5922, and leaving it 2.8% weaker against the U.S. currency in the past month.

Traders' attention Thursday will be turned to the ECB and the Bank of England's meeting. The ECB is fully expected to leave rates unchanged at a record low 1.0% on Thursday; having given few hints yet it is preparing to end some of its ultra-loose policy measures. The Bank of England meets the same day and is also set to hold rates at a record low 0.5%, while a majority of economists believe it has allocated all it intends to under its quantitative easing program.