MSCI's broadest gauge of the world's stock markets hit yet another record high and was on track to rise for its eighth of the nine business days so far this year - for a total increase of 3.5 percent.
The central bank should revisit its communication stance in early 2018 and gradually adjust its language to reflect improved growth prospects, the ECB's December policy meeting minutes showed on Thursday.
On a two-day cumulative basis, the single currency has jumped 1.4 percent, its best performance since August past year.
The dollar stayed in the doldrums after US wholesale prices dipped in December from November, reinforcing investors' expectations that inflation will remain low. Weak inflation at the producer level could add to concerns that the factors restraining inflation could become more persistent and result in the Federal Reserve being more cautious about raising interest rates this year.
Yet, "with that in mind, the near term trend for EUR/USD is higher and not lower as all of this is speculation until we actually hear from the Draghi", says Lien.
Hit by the strong euro, the dollar index - which measures the USA currency against a basket of six major rivals - slipped 0.6 percent to its weakest in four months, at 91.308.
The ECB has pledged to continue its bond purchase programme at least until September, and investors expect any rate hike to take place only next year.
The dollar grew weaker in general after data showed higher requests for unemployment benefits made to the USA government, accompanied by a decline in the income for producers. The index has finished in positive territory every day this year, with financials and retail stocks helping drive the gains ahead of the latest bank earnings announcements which are due out at the end of the week. Chances of an interest rate hike next week, which had climbed on recent strong employment figures, have slipped to around 70 percent from almost 90 percent on Monday, data from the overnight index swaps market showed.
Dollar Lower after Disappointing Data
Kashkari's motivation was to allow United States inflation rates and wage growth to push higher, but the sentiment concerned traders who are looking forward to three or possibly four interest rate hikes in 2018.
Germany's DAX 30 index fell 0.7% to 13,287.31, after dropping as much as 1%.
European shares are trading lower Wednesday, as investors retreat from the stock markets and show interest in the bond markets and oil.
Energy stocks also added a few points to the index as oil prices stayed robust due to production cuts and a fall in US inventories. The Dow and the tech-heavy Nasdaq climbed around 0.8% while the S&P 500 added 0.7%. The report triggered a sell-off in US Treasuries and the greenback yesterday.
Benchmark 10-year notes gained 6/32 in price to yield 2.53 percent, after rising as high as 2.597 on Wednesday, the highest since March 15.
Members of the European Central Bank's governing council are concerned that rising private-sector borrowing in France could threaten financial stability, minutes from a December meeting published Thursday showed.
In the other precious metals, the spot silver price rose $0.12 to $17.095-17.115 per oz.
Brent crude futures hovered at US$69.28 a barrel after hitting US$70.05 a barrel on Thursday, their highest level since November 2014, while US West Texas Intermediate (WTI) crude futures stood at US$63.49, down 0.3% on the day. Volkswagen AG (VOW.XE) shares were down 1.5% after they've charged up more than 7% so far this year.
Barty downs compatriot Gavrilova to reach Sydney final
She will face Ashleigh Barty , who beat Australian compatriot Daria Gavrilova 3-6, 6-4, 6-2 in the other semifinal. Still, I'm just trying to focus on every match, trying to learn from every single match", Kerber said.
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