At 12:30 GMT, the US economy released its reading for the producer price index, which rose by 0.5% in September, less than the previous reading 0.7%, and worse than forecasts of 0.6%.

The core reading (excluding food and fuel prices) rose by 0.2%, worse than forecasts of 0.5%, and worse than the previous reading of 0.6%. This data is negative for the US dollar.

European stocks rose on Thursday, and hit a 2-week high while on track for the second straight daily gain, thanks to improved risk appetite after a drop in the US T-bond yields, while today the mining sector led the gains thanks to Chinese demand hopes.

The Stoxx Europe 600 index rose 0.9% as of 11:10 GMT, and the highest level since September 27 at 464.82 points, after closing higher by 0.7% yesterday.

The mining sector saw the largest gains in Europe today, with a rise of more than 2.8%, thanks to hopes of strong demand in China.

The 10-year US Treasury yield fell 0.5% today, deepening losses for the third straight day, and pulled back further from a 4-month high of 1.636%, which lifts demand for gold.

The Federal Reserve's meeting minutes showed that the US central bank would start cutting its bond-buying program by mid-November, but monetary policy makers remained divided over the high inflation and the extent of the need for an interest rate hike.

S&P 500 futures rose 0.7% today, after the index closed higher by 0.3% yesterday, its first daily gain in 4 sessions.

Back to Europe, the Euro Stoxx 50 index rose 0.9%, France's CAC 40 rose 0.9%, Germany's DAX index rose 1%, and the UK's FTSE 100 rose 0.9%.

The US dollar fell against its peers on Thursday, deepening its losses for the second straight day and gave up its 13-month peak on profit-taking, in addition to a drop in the US T-bond yields, and ahead of key US data on the weekly jobless claims and producer prices.

The dollar index fell 0.3% to the lowest since October 4 at 93.75 points, after opening at 94.02 points, and hit a high at 94.08 points.

The index lost 0.5% yesterday, the first daily loss, after hitting its 13-month high of 94.56 points.

The dollar index was hurt as well by the recent decline in 10-year US treasury yields following latest Fed's minutes.

The minutes showed the Fed might start cutting down its bonds purchases program by November, but members remained divided on the size of the threat that inflation represents to the economy.

At 12:30 GMT, the unemployment claims for the week ending October 8 are expected down to 315K from 326K in the previous week.

At the same time, the US Producer Price Index is expected up by 7.1% y/y in September from 6.7% in August, and to rise by 0.6% m/m from 0.7%.

Sterling rose in European trade against dollar for another session, marking two-week highs as dollar's gains were curbed after the Federal Reserve's policy meeting.

GBP/USD rose 0.3% to 1.3699, the highest since September 28, after a session-low at 1.3651.

GBP/USD rose 0.5% in the first profit in four days as the greenback declines against a basket of major rivals. 

The dollar index fell 0.15% on Thursday, the second loss in a row, marking week lows at 93.86, away from 13-month high at 94.56.

The dollar index was hurt as well by the recent decline in 10-year US treasury yields following latest Fed's minutes.

The minutes showed the Fed might start cutting down its bonds purchases program by November, but members remained divided on the size of the threat that inflation represents to the economy.

Otherwise, sterling is boosted by inflationary pressures in Britain, in turn expected to nudge the Bank of England towards some policy tightening measures.