Euro rallies to three-year high versus dollar after German coalition breakthrough

  • Euro rallies to three-year high versus dollar after German coalition breakthrough

Euro rallies to three-year high versus dollar after German coalition breakthrough

And now sterling has fallen by 0.5 percent against the euro, after the ECB's most recent announcement.

Investors would probably take a policy message change as a sign that rate-setters may begin to wind down their 2.55-trillion-euro bond-buying program. The Baker-Hughes rig count will be released tomorrow along with retail sales data and the latest consumer price index (CPI) in the U.S. France and India will also report CPI on Friday.

With the euro zone seeing its best growth in a decade, the European Central Bank should gradually shift its stance to avoid a more disruptive move later and look at a broader revision of its policy guidance to reduce the focus on bond purchases and raise the emphasis on interest rates, accounts of the ECB's December meeting showed.

Palladium was 0.4pc lower at $1,078.72, down from a record high of $1,111.40 on Tuesday.

Optimism about fourth-quarter earnings boosted stocks.

The Eurozone has recently enjoyed solid economic data, such as this morning's 2017 German GDP figure, which revealed that growth has accelerated to a six-year high of 2.2 per cent - or 2.5 per cent on a working day adjusted basis.

The kiwi gained to 4.7080 Chinese yuan from 4.6838 yuan on Thursday after the Chinese government quashed speculation it was considering cutting its purchases of US Treasuries.

Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., January 8, 2018.

The dollar slipped to a more than three-year low against the euro on Friday, as the common currency extended its gains on hopes that European Central Bank policymakers are preparing to reduce their vast monetary stimulus programme.

If the talks broke down, the uncertainty around the need for a new election would weigh on the euro and the kiwi while the greenback would benefit.

The BOJ kicked things off Tuesday by cutting purchases of long-dated Japanese government bonds, spurring bets it may also tweak its yield-curve control policy.

Among other precious metals, spot silver was up 0.2pc at $16.97 an ounce from a two week low of $16.86 on Wednesday.

Dow Jones closed up by 0.80 percent, S&P 500 ended up 0.70 percent, Nasdaq finished the day up by 0.79 percent.

Gold contracts for February in the U.S. increased by 0.2 percent to stand at $1,322.50 an ounce.

Trading got under way with news that German Chancellor Angela Merkel's conservative CDU party has reached an initial deal with Martin Schulz's center-left SPD for formal coalition negotiations.

Brent crude prices hit $70 a barrel on signs of tightening crude stocks but settled off that level on Thursday, while a jump in energy shares helped lift US stocks.

Amundi's Defend said the gradual removal of liquidity from central banks would drive volatility higher across asset classes this year.