Euro Drops to Multi-Year Lows on Weak German ZEW Survey Data

The euro today fell against the US dollar during the European session following the release of weak German ZEW survey data early in the session. The EUR/USD currency pair traded at 34-month lows as the coronavirus headlines continue to dampen investor risk appetite.
The EUR/USD currency pair today fell from an opening high of 1.0838 to a low of 1.0786 in the American session and was slightly off these lows at the time of writing.
The currency pair traded in a tight range during the Asian session and into the European session as Asian traders stayed away from the single currency amid coronavirus headlines. The release of the German ZEW economic sentiment indicator for February compounded the pair’s problems as the print came in at 8.7 versus the expected 21.5 figure. The current situation print also missed expectations as did the Eurozone ZEW economic sentiment figures, which drove the pair lower. The pair’s upward mobility was hindered mainly by negative coronavirus headlines as new infections and deaths are being reported both in China and globally. The outbreak is now expected to have a significant impact on global economic growth.
The release of the upbeat New York Empire State Manufacturing Index in the early American session also contributed to the euro’s demise. A sustained rally by the safe-haven greenback as tracked by the US Dollar Index, which hit a high of 99.47 today, also drove the pair lower.
The currency pair’s future performance is likely to be affected by geopolitical headlines, and tomorrow’s US and European releases.
The EUR/USD currency pair was trading at 1.0814 as at 15:31 GTM having recovered from a low of 1.0786. The EUR/JPY currency pair was trading at 118.79 having risen from a low of 118.46.

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