News Stream – EUR

U.S. and European stocks rallied on Monday, with the S&P 500 for the moment moving away from a bear market, while the euro leapt after the European Central Bank said it was likely to lift its deposit rate out of negative territory by September. Oil prices slid and gold extended recent gains, but the dollar fell further as investors cut their bets on more greenback advances based on market expectations for rising yields as the Federal Reserve tightens money supply. Stocks on Wall Street also gained more than 1%, though the Nasdaq Composite initially lagged after briefly trading in the red.

The ECB launched negative interest rates in 2014 to bolster the flagging eurozone economy and reduce the risks of the bloc spiraling into deflation.

U.S. and European stocks mostly rallied on Monday, with the S&P 500 trading just above bear market territory, while the euro jumped after the European Central Bank said it was likely to lift its deposit rate out of negative territory by September. The MSCI all country world index gained 1.14%, though it was still down about 17% from its record high in January, and the pan-European STOXX 600 index was up 0.99%.

The Euro has broken higher during the trading session on Monday to break above the 1.06 level. At this point, the market looks as if it is trying to figure out where it is going next.

The direction of the EUR/USD into the close on Monday is likely to be determined by trader reaction to 1.0645.

Stocks kept just above bear market terrain on Monday while the euro leapt after the European Central Bank said it was likely to lift its deposit rate out of negative territory by September. Oil prices rose, gold extended its recent gains, but the dollar slipped further as investors cut their bets on further advances in the U.S. currency from rising U.S. interest rates. Investors were relieved that the S&P 500 index ended on Friday just clear of bear market territory, meaning down 20% from its Jan. 3 record high close.

The Russian rouble firmed more than 6% against the euro on Monday to a near seven-year high, boosted by capital controls, strong oil prices and an upcoming month-end tax period. The rouble has firmed about 30% against the dollar this year despite a full-scale economic crisis in Russia, making it the world's best-performing currency https://emea1.apps.cp.thomsonreuters.com/Apps/NewsServices/mediaProxy?apiKey=6d416f26-7b24-4f31-beb6-1b5aa0f3fafb&url=http%3A%2F%2Ffingfx.thomsonreuters.com%2Fgfx%2Frngs%2FGLOBAL-CURRENCIES-PERFORMANCE%2F0100301V041%2Findex.html - albeit artificially supported by controls imposed in late February to shield Russia's financial sector after its decision to send tens of thousands of troops into Ukraine prompted unprecedented Western sanctions.

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The Russian rouble strengthened on Monday, heading back towards multi-year highs hit against the dollar and euro last week, supported by capital controls and an upcoming month-end tax period. The rouble has firmed about 30% to the dollar this year despite a full-scale economic crisis in Russia, making it the world's best-performing currency https://emea1.apps.cp.thomsonreuters.com/Apps/NewsServices/mediaProxy?apiKey=6d416f26-7b24-4f31-beb6-1b5aa0f3fafb&url=http%3A%2F%2Ffingfx.thomsonreuters.com%2Fgfx%2Frngs%2FGLOBAL-CURRENCIES-PERFORMANCE%2F0100301V041%2Findex.html, albeit artificially supported by controls imposed in late February to shield Russia's financial sector after it sent tens of thousands of troops into Ukraine. The rouble is being driven by export-focused companies that are obliged to convert their foreign currency revenue after Western sanctions froze nearly half of Russia's gold and forex reserves.

By Geoffrey Smith

Self-driving buses and delivery vans could soon be a reality on UK roads.

While it’s a quieter week ahead on the economic calendar, private sector PMIs will give the markets some idea of how the global economy is fairing.

The euro’s slide against the dollar is breathing new life into a two-decade old question: Will this be the year the currencies reach parity?

The euro is down about 7% against the dollar so far this year and is close to reaching parity with the greenback for the first time in 20 years.

The Euro has rallied significantly during the week, bouncing from an extraordinarily oversold condition. That being said, it is still very much in a negative market.