U.S. dollar continues to decline against euro


A lull in noteworthy European economic data will see investors looking ahead as December's US CPI and retail sales figures cross the wires. Currently, EUR/USD is trading at 1.2119, up 0.73% on the day.

Analysts said the minutes were interpreted by markets as a sign that rate-setters may accelerate the timeline on winding down their 2.55 trillion euros bond-buying programme, the key plank of their stimulus policy for the past three years.

Germany's DAX 30 index was up 0.1% at 13,215.12, and France's CAC 40 picked up 0.1% at 5,493.95. The dollar weakened more broadly after US data showed a rise in jobless claims and a decrease in producer prices.

Bond yields rose sharply on Thursday after the accounts of the latest European Central Bank meeting showed policymakers were preparing for a change in their message to reflect an improved economic outlook for the euro zone. Yet it still suggested consumer spending had made a sizeable contribution to economic growth for the fourth quarter as a whole, after a disappointing third quarter.

Trade has ranged from $1,322.85-1,329.15 so far today.

"Our target for USA 10-year treasuries is 2.8 - and we might afford up to 3 per cent - but going beyond that it's becoming an alert signal", said Amundi's Defend. The Australian dollar rose to $0.7891, from $0.7842, but shied away from stiff chart resistance at $0.7900.

The end of a turbulent week for bond markets also saw U.S. Treasury yields extending Thursday's pullback after China disputed a media report that government officials had recommended it slow or halt its purchases of U.S. bonds.

It dropped again as the session wore on but was still close to five-month highs at 0.52 percent.

The BOJ kicked things off Tuesday by cutting purchases of long-dated Japanese government bonds, spurring bets it may also tweak its yield-curve control policy.

The euro charged up to $1.2123 from $1.2034 late Thursday in NY.

In the other precious metals, the spot silver price rose $0.12 to $17.095-17.115 per oz.

Gold contracts for February in the USA increased by 0.2 percent to stand at $1,322.50 an ounce.

The burst of business in options and the prospect of heightened volatility is likely to be welcome news for currency investors, whose returns suffered previous year as volatility tumbled amid well-telegraphed central-bank policy.

Brent crude futures settled 6 cents higher at United States dollars 69.26 a barrel on Thursday, after hitting USD 70.05 a barrel during the session, its highest level since November 2014.

The euro jumped to its highest level against the dollar since early 2015 on Friday after German lawmakers agreed on a coalition, more than three months after the country's general election.