Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Euro Slumps to 4-Month Low Amid Weaker Data, Virus Fallout Fears

Published 02/10/2020, 12:17 PM
Updated 02/10/2020, 12:56 PM
Euro Slumps to 4-Month Low Amid Weaker Data, Virus Fallout Fears

Euro Slumps to 4-Month Low Amid Weaker Data, Virus Fallout Fears

(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.

The euro has been plagued by fears that the spread of the coronavirus will undermine the region’s economic growth. A slew of weaker data is only making matters worse.

The shared currency touched a four-month low in early New York trading Monday, putting it on track for a a sixth straight daily decline, the longest losing streak since September. Data Monday showed Euro area investor confidence missed estimates at a time when traders are concerned Europe’s biggest economy could have contracted in the fourth quarter.

Investors are worried that the euro area economy will weaken further as the coronavirus continues to spread rapidly. Some forecasters are already lowering their estimates amid the concerns. JPMorgan Chase (NYSE:JPM) & Co. and RBC Capital Markets last week downgraded their forecasts on the currency.

“The euro can probably move lower, especially if some risk-off tone still exists tied to the virus,” said Brendan McKenna, a currency strategist at Wells Fargo (NYSE:WFC) & Co. in New York. The euro is likely to fall to 1.09 by the end of March, but is likely to rebound to 1.13 by year-end as “the effects of the virus will start to wear off” and the dollar weakens. McKenna expects European economic data will improve by year-end.

The euro fell 0.1% to 1.0919 at 12:08 p.m. in New York. It earlier dropped as much as 0.3% to 1.0909, the lowest since Oct. 2. The common currency posted its worst January since 2015, weakening 1.1%.

Separately, traders are also concerned about political upheaval in Germany, after Chancellor Angela Merkel’s former protege quit as party chief, leaving the race to lead the country wide open.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.