Early on Friday, the Euro is trading near a seven-week low against the US dollar a day after the ECB held its monetary policy steady, but sounded more dovish than markets expected. At the time of writing, EUR/USD is trading around 1.105.

On Thursday, at its meeting, the ECB announced its decision to keep monetary policy on hold but called for a broad review of its policy. ECB President Christine Lagarde stated that negative interest rates and quantitative easing have failed to improve inflation and bring it higher towards the central bank’s target.

Lagarde also sounded extremely dovish when she stated that the Eurozone economy continued to experience downside risks. Later on in the day, EUR/USD can see some movement when the PMI data from Germany and the Eurozone release.

The Euro also traded bearish as a result of the risk-off sentiment in global markets surrounding fears of an outbreak of the coronavirus across China and the rest of the world. European nations, especially Germany, are at risk as a result of the trade ties with China, and could potentially be vulnerable. Cases of the virus have also been reported from the US, however, the WHO is yet to declare a global emergency over the coronavirus.