Euro hits two-month high on ECB plans

The euro has hit a two-month high against the US dollar as the European Central Bank's bond-buying plans bolstered the single currency.

The euro rose 0.3% to $1.2673 in early trading this morning and also hit a two-month high against the Japanese yen and a one-month high against the Swiss franc. Yields on both Spanish and Italian 10-year bond yields fell, with Spanish yields dropping to 5.77%, the first time they have fallen below 6% since May. Italian 10-year yields fell back to 5.19%. European equity markets continued to build on yesterday's gains, with the French Cac 40 up over 1% at 3,550 and the German Dax up 0.83% at 7,226 in mid-morning trading. The FTSE 100's gains were more muted, however, rising 0.2% at 5,788.