Extends Gains In Wake Of ECB MonPol Decision

EUR/JPY went bid Thursday as demand for safe haven currencies dwindled, while the Eurozone's shared currency gained on the back of the greenback's retreat. EUR gained after the ECB delivered its expected decision to leave policy settings unchanged, but pulled back from highs during a fairly uneventful presser with ECB Pres Lagarde, who signalled that EZ economy may see a double-dip recession.

• European Council Pres Michel said that European leaders are aware of "how essential it is to take restrictive measures that need to be maintained, and in certain cases adapted and even strengthened," amid a difficult Covid-19 situation across the continent.
• Michel's comments came after a video summit of EU leaders, with the bulk of the agenda occupied by Covid-related topics. The leaders stopped short of making any material joint decisions, as they took stock of the Covid-19 situation in Europe.
• German Cll'r Merkel said she will be happy to discuss her country's energy relations with Russia with Joe Biden's administration, but her "basic position on Nord Stream 2 hasn't changed."
• EUR/JPY has extended gains and last sits +13 pips at Y126.06. Bulls look for gains past Jan 19 high of Y126.21 before taking aim at Jan 12 high of Y126.87. Bears need a fall through Jan 18 low of Y125.09 before targeting the 100-DMA at Y124.79.
• Focus turns to a slew of preliminary PMI surveys from across the Eurozone and the ECB's Survey of Professional Forecasters.