Euro Drops to Multi-Year Lows on Weak German ZEW Survey Data

The  euro today fell against the  US dollar during the  European session following the  release of  weak German ZEW survey data early in the session. The EUR/USD currency pair traded at 34-month lows as the coronavirus headlines continue to dampen investor risk appetite.
The  EUR/USD currency pair today fell from an  opening high of  1.0838 to  a  low of  1.0786 in  the  American session and  was slightly off these lows at  the  time of  writing.
The  currency pair traded in  a  tight range during the  Asian session and  into the  European session as  Asian traders stayed away from the  single currency amid coronavirus headlines. The  release of  the  German ZEW economic sentiment indicator for  February compounded the  pair’s problems as  the  print came in  at  8.7 versus the  expected 21.5 figure. The  current situation print also missed expectations as  did the  Eurozone ZEW economic sentiment figures, which drove the  pair lower. The  pair’s upward mobility was hindered mainly by  negative coronavirus headlines as  new infections and  deaths are being reported both in  China and  globally. The  outbreak is now expected to  have a significant impact on  global economic growth.
The  release of  the  upbeat New York Empire State Manufacturing Index in  the  early American session also contributed to  the  euro’s demise. A  sustained rally by  the  safe-haven greenback as  tracked by  the  US Dollar Index, which hit a  high of  99.47 today, also drove the  pair lower.
The currency pair’s future performance is likely to be affected by geopolitical headlines, and tomorrow’s US and European releases.
The  EUR/USD currency pair was trading at  1.0814 as  at  15:31 GTM having recovered from a  low of  1.0786. The  EUR/JPY currency pair was trading at  118.79 having risen from a  low of  118.46.

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