ECB keeps policy, guidance unchanged

The European Central Bank reaffirmed its ultra-easy policy stance on Thursday, even keeping the door open to increasing bond purchases, dashing hopes it would formally signal its intent to claw back stimulus from next year.

The ECB kept rates at their record lows, confirmed that asset buys would continue at 60 billion euros ($71.76 billion) per month at least until December and said it could even increase or expand the asset purchases if needed, sticking with its long-held super easy stance.

The statement is likely to rattle some investors who expected the ECB to start laying the groundwork for a cut in monetary stimulus because growth is robust, the threat of deflation long gone and unemployment falling fast -- all supporting the case for removing at least some of the bank's extraordinary measures.

Investor attention now turns to ECB President Mario Draghi's 1230 GMT news conference, during which he may still offer at least some clues to the evolution of the bank's view on stimulus and will also detail new economic projections.

"If the outlook becomes less favourable...the Governing Council stands ready to increase the programme in terms of size and/or duration," the ECB said in a statement.

The euro remained roughly 0.5 percent higher against the dollar after the ECB's decision.
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Dollar hits a year-low, global stocks rally set to end over strong euro

The US dollar sank to its lowest in more than a year against key world currencies on Friday as investors assessed comments from the European Central Bank (ECB) and obstacles to US President Donald Trump's domestic agenda, while world stock markets were poised to snap a 10-session streak of gains.

Gains in the yen, gold and US Treasuries pointed to moves into safe-haven assets compared with stocks that are considered riskier. Oil prices sank more than 1 per cent.

The euro built on sharp gains from a day earlier, rising to near two-year highs against the dollar and undermining European stocks, with Germany's DAX equity index down 1.7 per cent.

ECB President Mario Draghi said on Thursday financing conditions remained broadly supportive, and that the euro's appreciation had "received some attention." However, he did not cite that as a problem nor did he directly try to talk the currency down.

"The fact that Draghi didn't necessarily argue too much against the strength of the euro... certainly gave the greenlight for individuals to want to own the currency again or actually add to their positions," said Dean Popplewell, chief currency strategist at Oanda in Toronto.

MSCI's gauge of stocks across the globe shed 0.32 per cent, falling after 10 days of gains.

US stock indexes opened lower, pulling back from record high levels reached earlier in the week.
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