Strong economy growth of the Eurozone might cause problems for the European Central Bank

President of the European Central Bank ECB attends a press conference in the ECB headquarter in Frankfurt Germany Thursday Jan. 25 2018

President of the European Central Bank ECB attends a press conference in the ECB headquarter in Frankfurt Germany Thursday Jan. 25 2018

The Chinese yuan was at a two-year high, while Indonesia's rupiah, the Mexican peso and South African rand also rallied.

Concerns about U.S. protectionism kept the dollar weak after its worst day in six months, but it was the signals from the ECB's first meeting of 2018 after it again kept rates at record lows that were attracting attention.

Yet he'll also be pushed after the January policy meeting to address the strength of the euro and to give more insight into when his institution will shift away from crisis-era measures.

"The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases", the central bank said in a statement.

Oil prices were consolidating after jumping more than 1 percent on Tuesday, with benchmark Brent crude hitting $70 a barrel for the first time in a week.

Add this to the fact the European Central Bank rate meeting is probably one of the biggest influencers of the Euro's exchange rate from a purely fundamental perspective, and we have the potential for a reversal in EUR/USD.

The uncertainty about the European Central Bank made for a quiet pre-amble for share markets.

The pan-European STOXX 600 was getting going too.

At 2:30 PM, France's CAC-40 was at 5505.8 up 0.19%, UK's FTSE was at 7641.3 down 0.03% and Germany's DAX was at 13382.28 down 0.24%.

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Analysts note that the euro's rise on a trade weighted basis has been far less substantial than versus the dollar, and with investor sentiment towards the region at its highest in years, the single currency is strengthening for the right reasons.

Asian trading had been a mixed bag, with numerous moves driven by the weakening of the dollar.

The MSCI Asia Pacific Index fell 0.1 percent.

A Reuters poll of over 500 economists showed the global economy is expected to grow at the fastest pace since 2010.

"Obviously a weaker dollar is good for us, it's good because it has to do with trade and opportunities", Mnuchin said, helping send the euro to its highest level against the dollar since December 2014 on Wednesday.

US Commerce Secretary Wilbur Ross defended those tariffs and warned Washington would be prepared to fight back in future against countries it felt had flouted the rules.

Barring any last minute changes in Washington, Trump will join world leaders and senior executives in Davos for the annual World Economic Forum. I think the risk to the downside for the euro are limited, it is the upside move which would be more exciting.

The dollar edged higher as some investors decided that its recent three-year low may mark a turning point amid growing concern over the US stance on global trade.

"They (the United States administration) can either have tariffs with the rest of the world or do it organically through a nice depreciation of the dollar", said JP Morgan Asset Management's chief European markets strategist Karen Ward.

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