Euro maintains gains ahead of European inflation data

Euro rose in European trade against dollar for the fourth straight session as concerns about the banking sector in Europe subsided, with markets awaiting the European Central Bank's policies to counter inflationary pressures ahead of important European data. 

The dollar lost ground ahead of crucial US growth data in the fourth quarter of last year, and unemployment claims data, which might reduce pressures on the Federal Reserve. 

EUR/USD rose 0.25% to 1.0869, with a session-high at 1.0824, after rising yesterday, the third profit in a row amid strong demand on stocks in Europe. 

The ECB

Several ECB members said the bank is likely to extend interest rate hikes but by a slower pace to guarantee financial stability in the euro zone. 

ECB member Philip Lan said he doesn't see potential risks of a banking crisis in Europe in the near future, asserting the ongoing troubles are indirect consequences of the US and Swiss banking troubles. 

He believes there's a need to increase interest rates to bring inflation back to targets. 

European Rates

Such remarks bolstered the case for a 0.25% rate hike in upcoming meetings until interest rates are brought to neutral levels. 

Inflation Data

To determine pricing for European rate hikes, investors await important data on European consumer prices for several countries and for the euro zone in whole. 

The Dollar

The dollar index fell 0.2% on Thursday against a basket of major rivals as risk appetite rebounds while banking concerns dissipate. 

Investors await data on US growth and unemployment claims to gauge the path forward for the Federal Reserve's policies.