Initial reaction to the opening ECB.....>

EURO-DOLLAR: Initial reaction to the opening ECB press conference saw rate pop

up to $1.1109 but this quickly reversed with rate pressed to an eventual session

low of $1.1036 into the 1600GMT fix before recovering to $1.1059 at the close.

ECB kept rates unchanged as widely expected, ECB Lagarde reiterated risks to the

global outlook in her opening statement. Concerns over the China coronavirus saw

decent flows into JPY, though this was calmed later as WHO stated it was 'too

early' to declare the virus a global health emergency. EUR/USD drifted lower

through a fairly subdued Asian session ahead of the China Lunar New Year

holidays as virus developments were watched. Rate traded down to $1.1045 into

Europe and retained a soggy feel. Focus today on release of flash PMI data

beginning with France at 0815GMT, Germany 0830GMT and EZ at 0900GMT. Release

also at 0900GMT of the ECB Survey of Professional Forecasters. Panel discussion

in Davos at 0930GMT with ECB Villeroy(hawk) and ECB Knot(hawk) followed by a

reappearance by ECB Lagarde at 1030GMT in another panel discussion. 

- Support $1.1045, $1.1036(YTD low Jan23), strengthening into $1.1030.

Resistance $1.1060, $1.1080, $1.1100/10.