Euro Trades Lower As ECB Draghi Reiterates Accommodative Policy Stance

The euro declined against its major counterparts in the Asian session on Friday, after the European Central Bank President Mario Draghi signaled that the central bank would provide ample degree of stimulus as inflation has not shown convincing signs of a sustained upward trend.

Speaking at a customary press conference on Thursday, Draghi sounded cautious about inflationary prospectus and said that price growth is forecast to remain short of its target in 2020.

"Domestic price pressures remain muted overall and have yet to show convincing signs of a sustained upward trend," he told.

The ECB staff economic projections showed that inflation will average 1.7 percent in 2020, below the bank's goal of just under 2 percent.

The euro dropped to a 2-day low of 1.1765 against the greenback early in the Asian session and held steady thereafter. The pair finished Thursday's deals at 1.1778.

The single currency weakened to a weekly low of 0.8760 against the pound and moved sideways in subsequent part of the trading session. At Thursday's close, the pair was valued at 0.8769.

The 19-nation currency fell to more than a 2-week low of 132.16 against the Japanese yen, compared to 132.36 hit late New York Thursday. Further weakness may take the euro to a support around the 131.5 region.

Quarterly Tankan survey from Bank of Japan showed that confidence among Japanese large manufacturers increased for the fifth straight quarter to an 11-year high at the end of 2017, as strong exports and rising corporate profits underpin activity.

The large manufacturers' sentiment index rose to 25 from 22 a quarter ago. This was the highest score since the end of 2006.

The euro declined to a session's low of 1.1638 against the franc and traded sideways in the course of the session. The euro was worth 1.1648 against the Swiss franc when it closed deals on Thursday.

The euro slid to 1.5338 against the aussie, its lowest since November 14. If the euro falls further, 1.52 is possibly seen as its next support level.

The euro hit 1.6770 against the kiwi, a level unseen since November 10. Continuation of the euro's downtrend may see it challenging support around the 1.66 level.

The euro that closed Thursday's deals at 1.5068 against the loonie edged down to 1.5044. On the downside, 1.49 is likely seen as its next support level.

Looking ahead, Eurozone trade data for October is set for release in the European session.

In the New York session, Canada existing home sales for November and manufacturing sales for October as well as U.S. industrial production for November are set for release.