The euro is trading near a three year low against the U.S. dollar as Forex traders are waiting on Germany to release key economic sentiment later in the day today.
This data is expected to show a sharp downturn in investor confidence. This will only fuel pessimism over the overall economic health of the Eurozone and weaken the euro currency even further.
The U.S. financial markets were closed on Monday for the Presidents’ Day Holiday. This meant traders are more focused on the coronavirus, today, and European news surrounding Brexit.
The euro is trading near a multi-year low against the U.S. dollar. This morning he headline EUR/USD currency exchange rate is trading near $1.0835.
The Eurozone currency has lost about 2.3 percent against the U.S. dollar since the start of the month. Eurozone economic data has been disappointing and the dollar has seen safe haven capital inflows.
Traders are now thinking that the European Central Bank will stick with their accommodative monetary policy stance for quite some time.
The USD/JPY Forex market saw the yen strengthening, at first, on coronavirus news but is currently trading flat near 109.82 yen.
The GBP/USD currency exchange rate is also on the defensive. The EUR/GBP is a tad firmer as economic tensions simmer between the United Kingdom and the European Union. Both are digging their heels in as the try to hammer out a trade agreement.
Asian Traders try to assess the Economic Impact of the Coronavirus
The Chinese yuan and Japanese yen both traded steady during the Asian session as traders monitor the coronavirus.
Regional economies, like Singapore, have already reduced their economic outlook. China is introducing both fiscal and monetary policy measures to insulate their economy and Forex traders will be watching Japanese trade data, scheduled for release later today.
Euro Sentiment continues to Weaken ahead of Key ZEW Surveys
On the European economic calendar, Germany will publish closely watched ZEW consumer sentiment survey data. The Eurozone will also be releasing their ZEW survey.
Economic data has been worsening in the single currency bloc this month after tepid manufacturing and gross domestic product data from Germany. Germany and the Eurozone has a lot of exposure in China.