The euro strengthened above $1.35 for the first time since 2011, metals gained and Treasuries fell as the Federal Reserve meets and European economic confidence rose more than estimated this month. European stocks declined from a 23-month high.
The euro appreciated 0.4 percent to $1.3543 at 7:25 a.m. in New York, while the yen declined against all but one of its 16 major peers. Nickel advanced 2.1 percent and zinc climbed 2.3 percent, leading commodities to a three-month high. The Treasury 10-year yield increased two basis points to 2.02 percent. The Stoxx Europe 600 Index slipped 0.3 percent, while Standard & Poor’s 500 Index futures swung between gains and losses. Amazon.com Inc. jumped 9.2 percent after reporting gains in sales and North American operating margins.
The Fed’s latest round of bond buying will reach $1.14 trillion before it ends the program in the first quarter of 2014, economists forecast in a Bloomberg survey. The U.S. will report fourth-quarter economic growth today before monthly payroll data on Feb. 1. An index of executive and consumer sentiment rose to 89.2, surpassing the 88.2 reading forecast in a Bloomberg survey, the European Commission said today.
“The world is shifting from fear to hunt for opportunity,” said Neil Jones, head of European head of hedge- fund sales at Mizuho Corporate Bank Ltd. in London. “Slowly but surely, economic data in the euro zone is going in the right direction and the numbers today were encouraging. The euro is leading the way today.”
Euro Gains
The euro advanced for a second day against the dollar, reaching $1.3563, the highest level since November 2011. It appreciated to as high as 86.07 British pence, the strongest since Dec. 7, 2011, before trading at 85.85. Against the yen, Europe’s shared currency rose 1 percent….”
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