Single currency suffers on ECB policy.........>

FOREX: Single currency suffers on ECB policy review

- Lagarde pursued an 'owlish' in the ECB press conference, stopping short of

divulging details about the ECB's policy framework review. The EUR was sold

after the meeting, as traders zeroed in on Lagarde's focus on making future

policy action more effective - suggesting further asset purchases could pack a

bigger punch. EUR/USD cracked the 100-dma and trendline support in response.

- Elsewhere, renewed reports of Coronavirus spreading further beyond China kept

markets on the defensive. The US sovereign curve traded (again) lower and

flatter, placing more pressure on the 2y5y curve which is now just a few bps

from inversion. Reports of diagnoses in the UK and Middle East helped buoy the

JPY further, which got an extra boost as the EUR/JPY cross slipped below

long-held channel base support.

- Friday's session brings Japanese CPI and prelim PMIs from across the Eurozone,

UK and United States. Canadian retail sales are also on the docket  as well as

speeches from BoE's Haskel, ECB's Lagarde, Villeroy and BoJ's Kuroda (all at

Davos).