Mubasher: The euro jumped on Friday to its three-year high after media reports showed a significant progress in Germany’s coalition talks.

By 09:57 am GMT, the euro rose 0.78% against the US dollar to $1.2126.

The European single currency’s rally was also driven by expectations that the European Central Bank (ECB) may normalise its monetary policy at a faster pace.

ECB on Thursday announced it could change its policy message and evolve the communication stance gradually, pushing the EUR/USD pair up towards $1.1980.