Euro Hits Day’s Highs after ECB Minutes

Euro Hits Day’s Highs after ECB Minutes
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(January 11, 2018) The euro rose to the day’s highs on Thursday after the minutes of the European Central Bank’s December meeting said officials should consider a gradual shift in guidance from early 2018.

EUR/USD hit a high of 1.2013 and was at 1.2003 by 08:00 AM ET (13:00 GMT), up 0.41% for the day from around 1.1935 earlier.

The ECB should revisit its communication stance in early 2018 and gradually adjust its language to reflect improved growth prospects, the minutes of the bank’s latest policy meeting which was held last month, said.

Any changes to the bank’s guidance would likely be seen by investors as an indication that policymakers are preparing to start winding down their bond buying stimulus program.

The minutes noted that officials thought that their communication on the future path of interest rates, currently at record lows, would grow in importance.

“As progress was made toward a sustained adjustment in the path of inflation, the relative importance of the forward guidance on policy rates would increase,” the minutes said.

The minutes also showed that policymakers see a “continued robust and increasingly self-sustaining economic expansion.”

The euro was higher against the pound, with EUR/GBP rising 0.62% to 0.8901 from around 0.8863 earlier.

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