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Euro Rises to Strongest Since 2014 as Stars Align for Bulls

  • German coalition breakthrough the latest supportive argument
  • Money market fully pricing two ECB rate hikes by June 2019
Bloomberg business news
"The stars have aligned for a stronger euro this week," says Valentin Marinov of Credit Agricole.Source: Bloomberg
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The euro surged to a three-year high on signs that political risks in the euro area are fading and the European Central Bank may raise interest rates sooner than thought.

The common currency climbed for a third successive day after Chancellor Angela Merkel and Germany’s Social Democrats reached a preliminary accord to negotiate a coalition government. That followed minutes of the European Central Bank’s December meeting on Thursday showing that policy makers are considering a hawkish shift in their communication in the early months of 2018.