Euro tumbles amid talk of Quantitative Easing acceleration

Equities around the world jumped yesterday and the euro tumbled on signals the European Central Bank may accelerate its €1tn bond-buying programme over the next two months.

The dollar gained 1.6% against the euro and was broadly ahead for a second day, while US Treasuries fell on government data showing that US housing starts in April rose to a nearly seven-and-a-half-year peak.

Wall Street, which closed at record highs on Monday, reacted little to the upbeat housing data and was last down on weak results from retailer Wal-Mart. Some traders said the stronger-than-expected housing report could encourage Federal Reserve policymakers to raise interest rates sooner than later.