Euro Surges on ECB Announcement

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But critics say that the scheme has run its course and in a period of above trend growth, artificially low borrowing costs risk more damage than good by inflating asset price bubbles. In the meantime, the Platinum Group Metals continued to move in opposite directions. "The break of key topside levels opens up the potential for further moves higher".

The change of ECB policy has been widely anticipated, but investors are now on edge after reminders that central banks around the world have the potential to roil financial markets in 2018.

European shares dipped on Thursday as a bond market sell-off and a stronger euro took the steam out of the breakneck New Year rally in equities.

The ECB is considering changing the forward guidance if the reflation continues.

Now, economists believe the European Central Bank could change its course because of a small adjustment in its usual post-meeting statement. Treasury yields dipped, easing fears of a bear market for bonds, while the S&P 500 index clocked its seventh gain in eight days to close at a record high. The index is used as a measure of wholesale price inflation.

Meanwhile, the dollar index was struggling as the lackluster economic data pile up and the European Central Bank hawkish stance keeps the greenback from moving forward today; the dollar index was down by a total of 0.48% at 9.89. The greenback was primarily weighed down by the stronger euro.

By 1325 BST, the EUROSTOXX 600 was down 0.49%, while the EUROSTOXX 50 was 0.41% lower.

The ECB's warning shot also helped reverse the overnight bounce by US government bonds after China's regulator said a Bloomberg report on Wednesday that it was considering slowing or halting its USA bond purchases, was possibly "fake news".

In any event yesterday's move didn't impact United Kingdom and USA equity markets with the FTSE100 closing at a record high, while U.S. markets continued their march onwards to new records with the S&P500 posting its best start to a year since 1987.

USA 10-year Treasury yields - which move inverse to prices and are one of the main drivers of global borrowing costs - ricocheted between 2.45 and 2.55 percent from Wednesday's 10-month high of 2.597 percent. Of course, China may only be disputing the news about cutting back on buying US bonds in order to unload their Treasurys at better prices. It skidded over 11 percent in the previous session after the government of South Korea, a crucial source of global demand for cryptocurrency, said it was considering a plan to ban cryptocurrency trading. Regulators are concerned that speculation is becoming rampant and threatening the stability of exchanges and financial institutions.

U.S. West Texas Intermediate (WTI) crude futures settled at $63.80 a barrel, up 23 cents, the highest since December 2014.

Today's releases conclude both the United Kingdom and Eurozone data dockets for this week, leaving the GBP/EUR exchange rate to react to high-profile USA data tomorrow.

The opinions and forecasts herein are provided exclusively for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

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