Mario Draghi helps the Euro to gain strength

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U.S. Treasury Secretary Steven Mnuchin said on Wednesday that he welcomed the weaker dollar because it was "good for us".

An unexpected uptick in United Kingdom weekly earnings in the three months to November prompted the Euro to Pound (EUR/GBP) exchange rate to slump sharply.

Biogen Inc gained 3.32 percent before the opening bell after the drugmaker reported fourth-quarter revenue that beat Wall Street estimates on higher sales of its recently launched drug Spinraza.

North of the border, the Bank of Canada kicked off 2018 by hiking interest rates, buoyed by robust job growth and having raised rates twice back-to-back a year ago, even as uncertainty around the fate of the North American Free Trade Agreement lingers. Mnuchin provided balance to his comments insisting that while a weaker dollar has its benefits for trade, a strong dollar has benefits in other areas and that the USA isn't focused on its levels.

Overall an ample degree of monetary support is therefore needed to ensure inflation continues to pick up.

The ECB's first policy decision of 2018 comes after the euro surged to its strongest level against the dollar in more than three years.

The stimulus would come from asset purchases, asset holding, reinvestment and forward guidance that interest rates will remain low, Draghi said.

Europe, similar to the United States, is looking for ways to get inflation back up to 2% to foster ongoing economic growth.

Bank of America Merrill Research discusses the Dollars outlook in light of the currency's recent decline and notes that the the USD has been sliding since September just as tax reform began to gain momentum and even the passage of tax reform failed to slow the USD's descent.

The European Central Bank has left its interest rates and policy statement unchanged amid predictions that it will soon start signaling an exit from its extraordinary stimulus efforts. But the ECB's governing council meeting in Frankfurt will bring another round in the battle over how quickly to wind down mass bond-buying and ultimately raise interest rates.

If the ECB proves relatively dovish in tone this could see the EUR/GBP exchange rate lose further ground, with comments from ECB President Mario Draghi set to provoke particular volatility.

From this month, the European Central Bank has halved the amount of cheap cash it is pumping into the system under its quantitative easing programme to 30 billion euros ($37.3 billion) per month, and now envisages halting asset purchases in September.

After the close of trading on Thursday, results are expected from Intel Corp and Starbucks Corp. The region gathered momentum in January, with the Purchasing Managers' Index suggesting quarterly growth of 1 percent and German business confidence at a record high.