Euro Soft amid Raging Coronavirus Fear

The euro declined today against other most-traded currencies as markets remained in the grip of coronavirus epidemic fear, which made traders less willing to risk and prefer safer currencies to riskier ones. Germany released a report on its economic growth during today’s session but markets largely ignored it.
Destatis, the German Federal Statistical Office, reported that gross domestic product was unchanged in the fourth quarter of 2019 from the previous three months on a seasonally adjusted basis. The actual reading was the same as in the preceding quarter and matched expectations. Year-over-year, GDP rose by 0.4%, seasonally adjusted.
But the shared currency of the eurozone paid little attention to macroeconomic data, the same as yesterday. Instead, it reacted to the news about the spreading coronavirus. The deadly disease, known as COVID-19, spread out of China to other parts of the world, including Europe. Italy reported 229 confirmed cases and 7 deaths. Economists were concerned about potential global economic slowdown even before the outbreak, which is going to make matters far worse. It means that the eurozone economy will likely continue to struggle and the European Central Bank will maintain its monetary policy accommodative for a prolonged time and may even ease policy further.
EUR/USD fell from 1.0852 to 1.0844 as of 14:47 GMT today. EUR/JPY dropped from 120.15 to 119.70. EUR/GBP sank from 0.8392 to 0.8349.

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