· The dollar index was down 0.67 percent at 90.367, having reached its weakest since January 2015 at 90.279 in early trade.
· The euro climbed to a three-year high to the dollar on Monday, nearing the $1.23 line as investors ramped up bets in the backdrop of growing economic optimism in the euro zone and expectations the central bank may tighten policy soon.
· Euro bulls received a shot in the arm on Monday after data showed the trade surplus in the 19-country euro area rose to its highest level in eight months, indicating a stronger euro wasn’t proving to be a headwind for companies just yet.
· JP Morgan strategists, for one, expect eurozone’s economy to outpace that of the U.S. in 2018.
· The euro EUR= was up 0.7 percent at $1.2284 after hitting a high of almost $1.23, adding to gains made last week after the ECB said it could revisit its communication stance in early 2018. That heightened expectations policymakers were preparing to reduce the stimulus program.
· Hopes that a pro-European governing coalition is set to form in Germany have also boosted confidence in the continent.
· Sterling surged above $1.38 for the first time since the results of Britain’s vote to leave the European Union on Monday, as the dollar weakened broadly and on hopes that other EU members would seek a relatively “soft” Brexit.
· The European Central Bank could end its 2.55 trillion euro ($3.13 trillion) bond purchase scheme in one step after September if the economy and inflation develop as now expected, rate setter Ardo Hansson told German newspaper Boersen Zeitung.
· Oil hovered near a three-year high above $70 a barrel on Monday on signs that production cuts by OPEC and Russia are tightening supplies, although analysts warned of a “red flag” due to surging U.S. production.
International benchmark Brent crude futures LCOc1 last traded 29 cents higher at $70.16 by 1937 GMT, having risen to a high of $70.37 a barrel earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures CLc1 gained 51 cents at $64.81 a barrel. Both benchmarks hit levels not seen since December 2014, although trading was thin due to a holiday in the United States.
Reference: Reuters
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