Policymakers will need to agree an end-date for the ECB's €2.55 trillion bond purchase programme, which has cut borrowing costs and kick-started growth, even if it has failed to lift inflation back to target. The currency is up 1.5% against the dollar this year and just 0.3 percent higher on a trade-weighted basis.
Oil was back on the rise, feeding what are likely to be questions for the European Central Bank on rising inflation and supported by expectations of renewed US sanctions on Iran and declining output in crisis-hit Venezuela.
On Wednesday, the U.S. Dow Jones benchmark snapped a five-day losing streak thanks to more strong corporate earnings.
"The worry is about an overheating, leading to a rise in inflation, higher interest rates which bring on a textbook recession".
Deutsche Bank fell 2.6 per cent after the bank said it would scale back its bond and equities trading in a major overhaul of its investment bank, after reporting a 79 per cent drop in net profit in the first quarter.
Attention from investors will turn to ECB President Mario Draghi to see what he makes of recent conflicting economic data and whether the central bank will extend its ultra-easy monetary stimulus efforts beyond September.
The bank also reiterated that its bond purchasing scheme would remain at its current monthly pace of €30bn until at least the end of September 2018, or until the council had seen a sustained change in inflation towards its target of almost two per cent.
However, a raft of recent economic data, from industrial production to retail sales, suggest the eurozone economy slowed in the first quarter of 2018 after outpacing the USA economy a year ago.
"The risk is that he is less dovish than expected", Green added. The yield on 10-year German government bonds slid to 0.59%. It fetched $1.2185 before the European Central Bank meeting as the dollar saw only its second drop in eight sessions.
In recent days the euro has sold off heavily and a fall below $1.2154, its March 1 low, would leave it at its weakest since mid-January.
"With equity market sentiment holding firm in the face of rising bond yields, the almighty dollar could move through G-10 currency markets like a wrecking ball", Innes added.