Euro near seven-week low after ECB; China virus worries linger

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Euro near seven-week low after ECB; China virus worries linger

Global, Forex

24.1.2020

Euro near seven-week low after ECB; China virus worries linger

The euro hovered near a seven-week low against the dollar on Friday after the Eu...

Hideyuki Sano 4 Min Read TOKYO (Reuters) - The euro hovered near a seven-week low against the dollar on Friday after the European Central Bank was seen as more cautious than expected, while anxiety over China’s coronavirus outbreak propped up the safe-haven yen. FILE PHOTO: Euro currency bills are pictured at the Croatian National Bank in Zagreb, Croatia, May 21, 2019. REUTERS/Antonio Bronic The euro changed hands at $1.1055 EUR= , having touched a seven-week low of $1.1036 on Thursday. The currency flirted with five-week low against the British pound EURGBP=D4 and 33-month low against the Swiss franc EURCHF=. The ECB launched a broad review of its policy, seeking to redefine its main goal and how to achieve it, as years of the central bank’s experiment with negative interest rates and quantitative easing have failed to deliver targeted inflation levels. ECB President Christine Lagarde told a news conference that risks to growth in the euro zone remained tilted to the downside and traders took her overall tone as dovish. “Some people were hoping that Lagarde could talk about the possibility of policy normalization after Riksbank ended negative interest rates late last year. But there was absolutely no such indication from her,” said Kazushige Kaida, head of foreign exchange at State Street Bank. Riksbank, the central bank of Sweden, ended five years of negative interest rates last month, despite a slowdown in the Swedish economy, a decision which many investors thought was made to allay concerns about side-effects such as housing bubble damages to pension funds. Purchasing Managers’ Index (PMI) data from Germany and the euro zone due later on Friday is the next focus for the currency. The common currency was also undermined by the coronavirus threat in China because some countries in the bloc, notably Germany, have big trade exposures to the Asian economic giant. Concerns about the spread of the new disease bolstered the yen, which traded at 109.45 yen to the dollar JPY= , having risen to a two-week high of 109.26 on Thursday. The World Health Organisation (WHO) said on Thursday it was “a bit too early” to declare the new virus a global health emergency, providing financial markets with some relief. Yet many investors were anxious as the epidemic spreads within China, killing 25 people in China and infecting more than 800. “The Lunar New Year holiday in China has just begun and they say the virus could be latent for about a week. So at least for the next couple of weeks it will be difficult to gauge how much the new disease will have spread,” said Shinichiro Kadota, senior FX strategist at Barclays. “That suggests the yen is likely to have a strengthening bias during this period,” he added. Chinese financial markets will be closed through Thursday. Many other markets in the region will be shut on Monday. The offshore yuan was little changed at 6.9275 per dollar CNH=D4 , after touching a two-week low of 6.9423 on Thursday. FILE PHOTO: A Japan Yen note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration - RC19F6330BF0 The Australian dollar fetched $0.6843 , having erased all of the gains made after a firm payrolls figure the previous day, and was on track for a fourth consecutive week of losses. Elsewhere, sterling traded at $1.3121 GBP=D4 , little changed on the day but up 0.9% so far this week as solid UK economic data prompted traders to wind back expectations of a rate cut by the Bank of England at its policy meeting next week. UK PMI data, due at 9:30 a.m. local time (0930GMT) on Friday, will be closely watched for any clues on the BoE’s next policy decision on Jan. 30. Reporting by Hideyuki Sano; editing by Richard Pullin & Kim Coghill Our Standards: Read more: Reuters Top News

Global stocks steady as caution on China virus continues; euro hits seven-week low after ECBStocks made a barely positive start in early Asian trade on Friday after the wor...

Euro near seven-week low after ECB; virus fears support yenThe euro hovered near a seven-week low against the dollar on Friday after the Eu... ادوني دول هرجعهم ليكم كمان10سنين

ECB to launch review that will redefine its mission and toolsEuropean Central Bank President Christine Lagarde is set to launch a broad revie... That was dec 12, 2019. Has nothing to do with Davos. :)) The Protocols say that there was a point that our cunning would no longer work... too late. We woke up just a little before that time. Our cunning is kicking their asses. So, ECB decides what its mission and tools are? This became a joke.

Earnings, ECB decision, job market check: 3 things to watch for in the markets on ThursdayWe'll get earnings from Intel and Procter & Gamble, a rate decision from the ECB and weekly jobless claims on Thursday.

ECB holds rates as strategic review gets underwayThe European Central Bank (ECB) on Thursday held interest rates steady as it launched its first strategic review since 2003. Independent_ie

Underperforming Euro auto shares reflect fear of new front in U.S. trade warsEuphoric stock markets celebrated the China-U.S. trade truce by marking record h... not that we be able to buy european cars soon anyway as sale of petrol and diesel vehicles will be banned in 2050 in the uk.... so musk mobiles it is!



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