The dollar languished near three-month lows on Thursday ahead of European monetary policy statements and key U.S. data, while European shares were flat as investors digested mixed earnings news and as oil prices rose. Economists expect the European Central Bank to keep interest rates steady at 2.25 percent, but with the euro zone economy strengthening, it could still sound a hawkish note and lay the groundwork for a further increase before the end of March. An ECB statement is due at 1245 GMT and ECB President Jean-Claude Trichet holds a news conference at 1330 GMT. "The market is tussling between a March or April (ECB rate) rise, so every word that Trichet says will be studied," Westpac currency strategist Geoff Kendrick said. The euro traded at around $1.2150 , having hit a three-month high of $1.2180 last week, as investors bet on the dollar's yield advantage narrowing once the Federal Reserve stops tightening in the next few months, as expected. Benchmark 10-year euro zone government bonds yielded around 3.295 percent while Bund futures were at 121.94, barely changed on the day. The dollar changed hands for around 113.85 yen, having struck a three-month low of 113.52 earlier in the session and briefly firmed after Japan's vice finance minister, Koichi Hosokawa, said he was watching forex moves carefully. U.S. trade figures at 1330 GMT could spur more dollar selling if the deficit is wider than expected, traders said. The trade data are expected to show the deficit narrowed to $66.25 billion in November from a record $68.89 billion the previous month [