* ECB expected to signal faster money printing
LONDON, March 11 (Reuters) - The dollar index fell to its lowest in a week early in Thursday’s European session and there was a mild “risk on” tone in currency markets, as attention turned to the European Central Bank’s policy meeting.
Softer consumer prices data in the United States on Wednesday helped to ease fears about a possible spike in inflation when economies re-open from the COVID-19 pandemic. U.S. Treasury yields declined from their recent spike.
At the European Central Bank meeting, policymakers are expected to send a message that they will prevent bond yields from rising further and harming the bloc’s economic outlook.