ECB EDGY ON EURO STRENGTH

The euro has gained ground - up almost 12 percent against the dollar - this year on solid economic momentum in the currency bloc and on expectations the European Central Bank will scale back its massive stimulus starting next year.

The minutes of the ECB’s September policy meeting released on Thursday showed policymakers debated the trade-off between various options for extending its asset buying and a reduction. 

But policymakers also expressed concern and mentioned the potentially negative aspects of a strong euro and its impact on inflation at the meeting. 

The single currency is now forecast to stay around the $1.18 it was last trading on Thursday in a month, and over the next 3-6 months. It is then expected to add about 2 percent to $1.20 in a year. 

If those predictions for end 2017 are realized, it will mark the first year of gains for the euro since 2013. 

While expectations are for currency markets to trade in ranges, forecasts were more in favor of the euro in a year’s time, with higher highs and higher lows.