Euro leads currency rally on rate hike talk, equities advance

The single currency powered to more than one-year highs Wednesday after European Central Bank boss Mario Draghi offered a more hawkish outlook for the eurozone than expected, with traders brushing off later attempts by his officials to play down his remarks.

Euro leads currency rally on rate hike talk, equities advance

World Bulletin / News Desk

The euro led a broad advance in currencies against the greenback Thursday after a string of central bankers hinted at an end to loose monetary policies that have been in place since the financial crisis.

In Asia the euro broke above $1.14 for the first time since June last year as markets bet the ECB, finally seeing a recovery in the eurozone economy after years of weakness, will soon begin winding down its stimulus.

“The market is confused over Draghi sending his minions to unwind his previous night’s hawkishness,” Greg McKenna, chief market strategist at AxiTrader, said.

“But the rally is actually a continuation of the buy the dip theme we consistently have seen for some time now."

The outlook from the ECB comes as several central bank bosses hint at tightening policies put in place to combat the hammering that the global economy took from the financial crisis that started 10 years ago.

Sterling powered higher after Bank of England chief Mark Carney hinted at a rate hike, which took dealers by surprise and distracted them from British political uncertainty caused by this month's general election.

Güncelleme Tarihi: 29 Haziran 2017, 12:27