Investors’ expectations that the European Central Bank is poised to express a more cautious turn has kept the Euro under pressure. The policymakers are due to meet tomorrow and are likely to signal that it intends to maintain a dovish tone, despite relatively upbeat data recently. Analysts point out that while recent surveys show some improvement in outlook and sentiment, that has not translated to the actual Eurozone economy which remained weak through December 2019. Traders are hopeful that the recently inked trade pact between the U.S and China will help the Eurozone economy to recover.
The EUR/USD was trading higher as of 11:13 am in London, with the pair hitting $1.1085, a gain of 0.0226%, off the earlier low of $1.10748. The EUR/GBP was trading at 0.8478 Pence, down 0.2013%; the pair has ranged from a trough of 0.84749 Pence and a high of 0.85016 Pence. The EUR/JPY was higher at 121.873 Yen, up 0.1018%.
Virus Fears in China Weigh on High Risk Assets
In Australia, the Aussie Dollar touched on a 6-week trough against the greenback as fears that a viral outbreak could foster economic problems in China. Experts admit there is little known about the coronavirus and, as a result, the knee-jerk reaction to the news had earlier sent traders to the relative safety of the Japanese Yen. The AUD/JPY pair is trading higher and is currently at 75.259 Yen, up 0.0998%, sliding off the earlier trough of 75.025 Yen. The NZD/JPY is also trading higher at 72.5070 Yen, a gain of 0.0925% and off the session low of 72.310 Yen.