European Markets Drop After Euro Surges

Americas Roundup: Euro gains after ECB minutes released, Dollar falls on weak US inflation, more jobless claims, Wall

ECB Predicts Achievement of Inflation Targets in Eurozone

When the euro was created some 15 years ago, there was speculation that the new currency might come to challenge the dominance of the USA dollar as the global reserve currency of choice.

In late NY trading, the euro rose to 1.2182 dollars from 1.2038 dollars in the previous session, and the British pound gained to 1.3734 dollars from 1.3534 USA dollars in the previous session.

Australia's job market has seen strong performance in recent months so if the job market beats expectations again it could help the Australian Dollar to hold its ground against a sturdy Euro.

The European Central Bank should revisit its communication stance in early 2018, accounts of its December meeting showed, suggesting that policymakers could soon start preparing markets for the end of the bank's massive stimulus.

The antipodean currencies were mixed, with aussie/dollar trading almost 0.3% higher, but kiwi/dollar being marginally lower.

United States economic news-flow has notably deteriorated relative to consensus forecasts in recent weeks, hinting that analysts' models may be overly optimistic and opening the door for further downside surprises.

According to the European Central Bank report, policymakers agreed that while economic data had been more positive than expected, underlying inflation "had yet to show convincing signs of a sustained upward trend".

Losses for European benchmarks started to accelerate alongside a drop in U.S. stocks (http://www.marketwatch.com/story/dow-futures-slide-135-points-as-traders-keep-a-wary-eye-on-bonds-2018-01-10) following a Bloomberg report that China is considering halting or slowing purchases of U.S. Treasurys. Sterling fell 0.5 cents to €1.1246.

Winter Storm Hunter: Where Is It Going And When Will It Hit?
We'll get a glimpse at spring weather Thursday, as an intermittent drizzle will stick around all day and into the evening. The best chance for an accurate forecast is two to three days before the weather event. "So much can change", he said.

Despite the PPI report, the dollar fell 0.4% on the DXY index on Thursday.

UK's benchmark FTSE 100 closed up by 0.2 percent, the pan-European FTSEurofirst 300 ended the day down by 0.23 percent, Germany's Dax ended down by 0.6 percent, France's CAC finished the day down by 0.3 percent.

The Dow Jones Industrial Average rose 185.41 points, or 0.72 per cent, to 25,760.14, the S&P 500 gained 15.39 points, or 0.56 per cent, to 2,782.95 and the Nasdaq Composite added 40.17 points, or 0.56 per cent, to 7,251.95.

The U.S. central bank's preferred inflation measure, the personal consumption expenditures price index excluding food and energy, has undershot its target since May 2012. It's up another 0.8 percent at $1.2113, just shy of its earlier high of $1.2138, its highest level since the end of 2014.

Spot gold was up 0.5 percent at $1,322.74 an ounce by 1:37 p.m. EST (1837 GMT) after touching $1,326.56 on Wednesday, the highest since September 15.

U.S crude oil rose 50 cents to settle at $64.30 a barrel, while Brent rose 61 cents to settle at $69.87.

Launched three years ago, the asset purchases depressed borrowing costs, staving off the threat of deflation and putting growth on its best run since before the bloc's debt crisis.

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