2013.03.0706:57:45UTC+00Shares, dollar gain on outlook for central bank action

European shares edged higher and the euro hovered near three-month lows against the dollar on Thursday on expectations the European Central Bank could point to future policy easing after its rate-setting meeting later.

The British pound was also weaker against the dollar, touching a fresh 2-1/2-year low of $1.4965, with markets expecting the Bank of England to announce more monetary stimulus when its policy meeting ends at 1200 GMT.

"The reality is that the Fed is still pumping in $85 billion a month at the moment, whereas the ECB and the BoE aren't," said Daragh Maher, currency strategist at HSBC.

With market players focused on the strength of the U.S. economy, the dollar was seen drawing further support from signs Congress is about to pass a measure to keep funding government spending until the end of September.

The euro was slightly firmer in early European business at around $1.3010, after sliding to $1.2994 earlier, within sight of its December trough of $1.2876.

German Bund futures were little changed on the day at 145.14, but the contract could gain if ECB President Mario Draghi turns out to be more downbeat on the euro zone's prospects than expected.