[ForexNews]

Analysts said uncertainty ahead of the stress test results and the release of a key jobs market report on Friday helped confine most major currencies in ranges, but they added that it will need some major shocks to kill the recent optimism in financial markets. "A lot of bouncing around," said Andrew Busch, global FX strategist at BMO Capital Markets in Chicago. "There's some nervousness over the actual release of the stress test tomorrow and of course going into Friday we have the nonfarm payrolls number." Also on Thursday, the ECB is expected to cut interest rates to a record low 1.0 percent on Thursday, though traders were more interested in whether it announces other so-called unconventional measures, such as buying securities. The euro has risen sharply in recent sessions, hitting a one-month high near $1.3440 earlier this week, after a slew of economic reports from around the globe stoked hopes that the world economy may be through the worst of the recession, helping to dry up safe-haven flows into the U.S. dollar."My guess would be that the ECB remains very cautious about engaging in quantitative easing," Busch said. But "I think it's priced in." The Bank of England also meets on Thursday and is seen holding its benchmark interest rate at 0.5 percent, a record low. Sterling was last up 0.5 percent at $1.5132