The euro advanced on Thursday after the European Central Bank all but confirmed a further rise in eurozone interest rates next month.

The ECB, as expected, left rates on hold at 3.25 per cent after its policy-setting meeting. However, But Jean-Claude Trichet, ECB president, used the magic words “strong vigilance” right at the start of his post-decision press conference – a phrase that has prefaced all five of the interest rates rises in the current ECB tightening cycle.