The head of the European Central Bank told reporters on Thursday that downside risks continued to be a concern to the central bank, which market players viewed as a more dovish tone than had originally been anticipated. Christine Lagarde pointed out that the ECB's attempts to meet target inflation had failed and that the main goal of the ECB might now have to be redefined in order to meet those goals. As a result of the policy announcement, the Euro came under heavy pressure and, in Asian trade, remains close to a 7-week trough versus the US Dollar.
As of 10:55 am in Tokyo, the EUR/USD was trading lower at $1.1053, a loss of 0.0145% and off the session trough of $1.10504. The EUR/JPY was also lower at 120.9780 Yen, down 0.0727%; the pair has ranged from a low of 120.965 Yen to a high of 121.144 Yen, in today's session.
Coronavirus Fears Sends Yen Broadly Higher
Elsewhere in Asia, the Japanese Yen is being lifted by growing concerns over the latest news on the coronavirus which is believed to have originated in Wuhan Province, China. With the Chinese Lunar New Year celebration about to get underway, authorities are concerned about the spread of the highly communicable disease, but won't know how bad the situation is for at least a few weeks. With China a significant trade partner to much of the Eurozone, as well as the United States, worries about the health of the Chinese economy in the event the current health scare worsens has sent the safe haven Japanese Yen higher. The USD/JPY is lower at 109.4600 Yen, down 0.0639%, while the GBP/JPY was down at 143.555 Yen, a loss of 0.1037%. The Japanese Yen was also higher against the Aussie and Kiwi Dollars, respectively trading at 72.374 Yen, down 0.16%, and 74.875 Yen, down 0.1201%.