The euro steadied after hitting a four-month high against the dollar on Thursday as traders brace for the European Central Bank's rate decision and outlook against the backdrop of rising yields after Germany's historic debt overhaul.

Asian stocks rose on Thursday as investors held out hope that trade tensions could ease after U.S. President Donald Trumpexempted some automakers from tariffs for a month, while the euro stood tall ahead of the European Central Bank's meeting.

Although the ECB would not pre-commit to future rate cuts, the fact that Christine Lagarde did not push back on lower rate cut expectations is a sign that the ECB is comfortable with a neutral rate around 2%.

The run on the dollar has been extended today, but it has stalled in the European morning. As North American traders return to their posts, the Australian and Canadian

The euro extended its gains after the European Central Bank cut interest rates as expected on Thursday (Mar 6) and kept the door ajar to more, even as a looming trade war with the US and plans to boost military spending drive Europe’s biggest economic policy upheaval in decades.