The euro inched up on Thursday after the European Central Bank left interest rates unchanged as expected, as investors looked to the upcoming news conference for clues on the future path of monetary policy. Markets are pricing in a quarter point euro zone rate rise in December, to 3.5 percent, but the outlook for 2007 is less clear-cut, analysts said. ECB President Jean-Claude Trichet holds a news conference at 1330 GMT. "The market knows exactly what the near-term agenda is for the ECB -- all we're waiting for now is confirmation that the ECB has switched from close monitoring to vigilant policy language, that will confirm that a December rate hike is on the agenda," said Audrey Childe-Freeman, European economist at CIBC World Markets. "The uncertain element at this stage lies with what to expect for 2007." The euro ticked up to the day's highs at $1.2776 at 1250 GMT, up slightly on the day and within a quarter cent of one-month highs set on Wednesday. The euro was already on a firm footing on Thursday after the euro zone Purchasing Managers' Index edged up to 57.0 in October, higher than the 56.7 consensus forecast. Also on Thursday, data showed German unemployment fell by a larger than expected 67,000 in October, on a seasonally adjusted basis.