US rates plan not set in stone

The euro has been on a steady upward path against the dollar for much of this year as it climbed from $1.04 in early January to around the $1.20 level by August, writes Oliver Mangan.

However, the euro-dollar rate has been range-bound since then, with trading confined to a narrow $1.16 to $1.20 corridor, as some of the shine came off the single currency while the dollar became more stable.

Part of the reason for this was the ECB announced in the autumn that it was extending quantitative easing, or its asset-purchase programme, until at least September 2018, though at a reduced rate from the start of next year. It also continues to indicate that interest rates will remain at the current, very low levels well past the end of net asset purchases under its quantitative easing programme. Thus, markets do not see a hike in ECB rates until 2019.