The euro remained anchored near an 11-year low against the dollar with the European Central Bank gearing up to launch its €1.1 trillion bond-buying programme.

The euro broke below $1.0980 for the first time since September 2003 as it continued its steady march lower.

The same balance of risks saw the gap between German and US bond yields stretched to its widest in more than a quarter of a century as government bond yields across the 19-country euro zone took another step lower.

Equity investors were playing it safe, however, ahead of the US jobs data later on Friday.

Europe’s benchmark FTSEurofirst 300 was barely changed in early trading after Thursday’s news that the ECB will start its long-awaited QE programme on Monday had seen it hit a seven-year high.

Analysts polled by Reuters expect US payrolls due later to have increased 240,000 last month and the jobless rate to have ticked down to 5.6 per cent from 5.7 per cent.

Although that would be a slight slowdown in the headline trend it would mark the 12th straight month of job increases above 200,000, the longest such run since 1994.

Philip Marey, a US-focused strategist at Rabobank, said the Fed is happy with the labour market in terms of interest rate hikes, but slack prices were a concern.

“It is the (low) inflation picture that will deter them from pulling the trigger on interest rates early,” he said.

Against a basket of major currencies the dollar was at the new 11-year year highs, but dealers saw little prospect of significant further moves before US payroll numbers .

Data on Friday showed German industrial output rose more than expected in January, notching up its fifth straight monthly increase, while it also climbed 0.4 per cent year-on-year in Spain.

“The positive result in January and the upward revision of the data from the previous months underline that the recovery of the German economy is continuing,” its economy ministry said.

REUTERS