* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Jan 22 (Reuters) - The euro remained at a one-month
low on Wednesday amid expectations European Central Bank
policymakers would strike a cautious tone when they met later on
Thursday.
A survey by Germany's ZEW research institute showed on
Monday investors' mood improved more than expected in January
and the signing of a China-U.S. trade pact raised hopes Europe's
economy would recover. A Citigroup index of euro zone economic
activity .CESIEUR rose to its highest since February 2018.
But analysts say the improvement in the business surveys is
not yet evident in actual economic activity, which remained weak
at the end of last year.
"The ECB is likely to acknowledge that downside risks have
eased, but there is no need to signal that it plans to deviate
from their looser-for-longer policy message at the current
juncture," MUFG strategists said in a note.
Against the dollar, the euro was weaker at $1.1077
EUR=EBS , its lowest since Dec. 25. It has weakened more than
1% so far this month.
Elsewhere, the yuan dipped and the Australian dollar hit a
six-week low on fears the outbreak of a new coronavirus in China
would create more problems for the Chinese economy. The Australian dollar AUD=D3 , often used as a proxy bet on
the Chinese economy, fell as low as $0.6827, a trough last seen
in mid-December, and last stood at $0.6837, down 0.13%.
The concerns surrounding the little-known virus propped up
the safe-haven yen, which traded at 109.98 yen JPY= , up from
Tuesday's low of 110.23.
The yuan had fallen about 0.55% on Tuesday, its biggest
decline in almost five months, in the onshore trade. It last
stood at 6.9063 per dollar CNY=CFXS , almost flat on the day.