Monday is light on economic data but traders are looking to a German business sentiment indicator due Tuesday and flash purchasing managers indexes on Friday for further evidence on the state of the euro zone economy.

Last week data showed in particular that momentum in Germany, the region’s powerhouse economy, was struggling.

“EUR/USD seems to be comfortably trading around its new lows and in the next few days we expect to see a continuation in the recent downtrend rather than any clear rebound,” said ING analysts.

“The fears around the coronavirus impact on the Eurozone economy remain well in place while data this week should be in line with latest releases in providing a non-encouraging picture.”

The euro inched higher to $1.0836 EUR=EBS after earlier falling to $1.0817, its weakest since mid-2017.

The currency has lost 2.3% of its value against the dollar so far in February.

Kit Juckes, an analyst at Societe Generale, said that while data shows that the market is building a short euro position, “it remains a long way from its peaks”.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.