Commodity News
HeadLine : Euro near seven-week low after ECB; virus fears support yen
Date : Jan 24 2020
The euro hovered near a seven-week low against the dollar on Friday after the European Central Bank was seen as more dovish than expected, while anxiety over China's coronavirus outbreak propped up the safe-haven yen. The euro stood at $1.1055 (EUR=), touching a seven-week low of $1.1036 hit in U.S. trade on Thursday after the ECB held interest rates steady and launched a broad review of its policy. ECB President Christine Lagarde on Thursday sought to redefine the ECB's 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. 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. 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 currency bloc, notably Germany, have big trade exposures to the Asian economic giant. Concerns about the new disease bolstered the yen, which traded at 109.55 yen to the dollar , having risen to a two-week high of 109.26 on Thursday.

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