Euro Falls Against Strong Dollar as Coronavirus Fears Persist

The  euro today fell against the  much stronger US dollar, which was boosted by  the  upbeat data released on  Monday. The  EUR/USD currency pair kept falling despite the  release of  upbeat data from across the  euro area as  the  coronavirus human and  economic toll mounted.
The  EUR/USD currency pair today fell from a  high of  1.1064 in  the  Asian session to  a  low of  1.1033 in  the  American session and  was near these lows at  the  time of  writing.
The  currency pair traded with a  bearish bias from the  Asian session driven by  the  prevailing risk-off market sentiment in  the  face of  the  spreading Wuhan coronavirus. The  pair headed lower in  the  early European session despite the  release of  the  preliminary Italian consumer price index data for  January by  Istat. According to  Istat, Italian inflation expanded by  0.2% beating estimates by  0.1%. The  Eurozone producer price index for  December released by  Eurostat also met consensus estimates by  coming in  at  -0.7%, but could not lift the  pair. The  greenback’s rally as  tracked by  the  US Dollar Index, which hit a  high of  98.01 earlier today drove the  pair lower.
The  pair headed lower in  the  American session despite analysts downplaying the  impact of  the  coronavirus. The  release of  the  upbeat ISM New York business conditions index for  January also boosted the  dollar. The  US factory orders for  December released by  the  Census Bureau also drove the  pair lower.
The  currency pair’s future performance is likely to  be driven by  tomorrow’s multiple Markit PMI releases and  employment data.
The  EUR/USD currency pair was trading at  1.1044 as  at  19:38 GMT having fallen from a  high of  1.1064. The  EUR/JPY currency pair was trading at  120.96 having risen from a  low of  120.06.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.