Euro rallies to 37-month high versus dollar

Euro rose to the highest since December 19, 2014 against the dollar, following earlier data from the euro zone and amid a lack  thereof from the US due to the Martin Luther King holiday. 

As of 05:00 GMT, EUR/USD rose 0.51% to 1.2264 from the opening of 1.2197, with an intraday low at 1.2188, and a 37-month peak at 1.2297. 

Earlier euro zone data showed the trade surplus up to 22.5 billion euros from 19 billion in November, beating expectations of 22.4 billion, while French finance minister said France's economy would grow beyond the estimated 1.7% in 2018. 

The chances bolstered expectations of possible policy tightening by the European Central Bank in the January 25 meeting, especially after the latest ECB minutes showed confidence in achieving inflation and growth targets. 

Markets are pricing in potential policy tightening prospects by the European Central Bank in 2018, which would close some of the gap between it and the Federal Reserve and weigh on the dollar. 

 Inversely, chances of a Fed rate hike in March fell after a spate of disappointing US inflation data, in turn bashing the greenback to 2015 lows. 

President Donald Trump commented on the chances of closing the government in the US with no knowledge on the matter, noting that in case no deal was reached between the Democrats and the Republicans, the government would be shut from January 19.