Stocks rose in the United States and Europe and the dollar hit a three-week high against the euro after European Central Bank President Mario Draghi said further rate cuts were being considered to stimulate the euro zone economy.
With the prospect of a further easing from one of the world’s most important central banks, you would expect to see strength in commodities like oil, gold and other metals, but the accompanying dollar strength appears to be overwhelming this effect.
The U.S. dollar was up after European Central Bank Chief Mario Draghi took a dovish tone on the states of the broader European economy. The dollar gained against safe-haven currencies like the yen and the Swiss franc and was boosted by a surge in the U.S. markets thanks to stronger-than-expected earnings from a number of firms.
European shares paused on Monday after their strong start to the fourth quarter while the dollar dipped towards three-week lows, with investors unconvinced the U.S. Federal Reserve would raise interest rates this year.