News: FOREX-Euro gains after ECB decision, yen weakens on trade hopes

• ECB cuts rates, restarts asset purchases
• Yen weakens on U.S.-China trade hopes
• US consumer prices rose in August

(New throughout, updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON)

The euro gained against the dollar on Thursday, erasing earlier losses, after the European Central Bank launched new stimulus but failed to live up to some dovish market expectations.

The ECB cut its deposit rate to a record low -0.5% from -0.4% and will restart bond purchases of 20 billion euros a month from November.

It also said it expects bond purchases to run for as long as necessary and end shortly before it starts raising the key ECB interest rates.

“We got a little bit of everything, but when all was said and done I think markets were expecting the bazooka to come out, and we definitely didn’t get the bazooka,” said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York.

The euro EUR= was last up 0.33% at $1.1045, after earlier dropping as low as $1.0925. That was the lowest since the single currency fell to $1.0924 on Sept. 3, which was the lowest in more than two years.

Central banks globally are fighting against slowing growth and tepid inflation, with the U.S.-China trade war adding further headwinds to the global economy.

The safe-haven Japanese yen weakened after Bloomberg News reported that Trump administration officials have discussed delaying or rolling back some tariffs on Chinese goods.

It comes after U.S. President Donald Trump on Wednesday welcomed China's decision to exempt some U.S. anti-cancer drugs and other goods from its tariffs, and announced a short delay to scheduled tariff hikes on billions worth of Chinese goods.

The greenback was last up 0.07% at 107.89 yen JPY= . U.S. data on Thursday showed that underlying consumer prices increased solidly in August, leading to the largest annual gain in a year, but rising inflation is unlikely to deter the Federal Reserve from cutting interest rates again next week to support a slowing economy.

It comes after data on Wednesday showed that U.S. producer prices unexpectedly rose in August.

This next major economic focus will be retail sales data on Friday.

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	Currency bid prices at 10:23AM (1423 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.1045		$1.1009	 +0.33%		 -3.70%	  +1.1069	 +1.0928 
 Dollar/Yen	   JPY=		107.8900	   107.8100	+0.07%		 -2.15%	  +108.1600   +107.5300 
 Euro/Yen		 EURJPY=	 119.18		 118.71	  +0.40%		 -5.58%	  +119.4900   +117.5800 
 Dollar/Swiss	 CHF=		0.9896		 0.9926	  -0.30%		 +0.84%	  +0.9945	 +0.9883 
 Sterling/Dollar  GBP=		1.2339		 1.2326	  +0.11%		 -3.28%	  +1.2357	 +1.2284 
 Dollar/Canadian  CAD=		1.3177		 1.3191	  -0.11%		 -3.38%	  +1.3217	 +1.3176 
 Australian/Doll  AUD=		0.6888		 0.6861	  +0.39%		 -2.28%	  +0.6891	 +0.6861 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.0933		 1.0932	  +0.01%		 -2.85%	  +1.0949	 +1.0853 
 Euro/Sterling	EURGBP=	 0.8949		 0.8929	  +0.22%		 -0.39%	  +0.8972	 +0.8887 
 NZ			   NZD=		0.6439		 0.6411	  +0.44%		 -4.12%	  +0.6450	 +0.6410 
 Dollar/Dollar																				   

 Dollar/Norway	NOK=		8.9375		 8.9554	  -0.20%		 +3.46%	  +9.0096	 +8.9358 
 Euro/Norway	  EURNOK=	 9.8726		 9.8615	  +0.11%		 -0.34%	  +9.9107	 +9.8300 
 Dollar/Sweden	SEK=		9.6265		 9.6722	  -0.17%		 +7.39%	  +9.7308	 +9.6224 
 Euro/Sweden	  EURSEK=	 10.6332		10.6517	 -0.17%		 +3.60%	  +10.6781	+10.6149