EUR wanes as ECB preps markets for gloomier...>

FOREX: EUR wanes as ECB preps markets for gloomier outlook

-While the ECB rate decision and subsequent press conference rarely touched on

policy tools or ECB action, it was clear that, to Draghi and the board, the

economic outlook has deteriorated and the central bank may be forced to cut both

their growth and inflation forecasts in the coming months. Draghi stated that

risks to growth "have moved to the downside", giving the greenlight to markets

to sell the single currency and press EUR/USD below $1.13 and toward the

mid-December lows of $1.1270.

-AUD sat close to the bottom of the pile as mortgage rate woes carried through

the European and US sessions, prompting AUD/USD to touch $0.7085 and the lowest

levels since the first days of January and the currency flash crash on Jan3.

-The greenback traded well, with the USD index rallying through the 50-dma as

White House advisor Kudlow appeared upbeat on the upcoming January jobs report,

stating it may be "up" and show "significant" gains. This helped USD top the G10

pile Thursday.

-German IFO data and a speech from BoJ's Kuroda are the highlights Friday.