The euro hit a fresh three-year high on Monday as optimism around
growth buoys expectations of tighter policy from central banks, while
the chance of a pro-European coalition in Germany also boosted
confidence in the continent
With the world in general and Europe in particular showing signs of sustained economic growth, global stocks benchmarks jumped to fresh highs, even though investors are now pricing in the withdrawal of central banks’ extraordinary stimulus.
That view was given further fuel last week by an account of European Central Bank discussions which suggested policymakers could soon start preparing the ground for a reduction in support.
The single currency rose to $1.2227 at one stage on Monday, a price last seen in December 2014, just before the ECB first announced its massive government bond purchase program.
Nor is the ECB the only game in town: Bank of Japan Governor Haruhiko Kuroda offered a positive view on his nation’s economy and inflation on Monday, sending the yen to a four-month high against the dollar.
With the world in general and Europe in particular showing signs of sustained economic growth, global stocks benchmarks jumped to fresh highs, even though investors are now pricing in the withdrawal of central banks’ extraordinary stimulus.
That view was given further fuel last week by an account of European Central Bank discussions which suggested policymakers could soon start preparing the ground for a reduction in support.
The single currency rose to $1.2227 at one stage on Monday, a price last seen in December 2014, just before the ECB first announced its massive government bond purchase program.
Nor is the ECB the only game in town: Bank of Japan Governor Haruhiko Kuroda offered a positive view on his nation’s economy and inflation on Monday, sending the yen to a four-month high against the dollar.
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