Euro hits four-month lows on dismal German data; safe-haven Yen, Swiss Franc drown

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Euro hits four-month lows on dismal German data; safe-haven Yen, Swiss Franc drown

On Thursday, the 6th of February 2020, the eurozone currency toppled to a nearly four-month low against its American counterpart following release of a bleaker-than-anticipated German industrial orders' data, which fell by 2.1 per cent from a month earlier in December, missing an analysts’ estimate of a rise of 0.6 per cent, remarking the index’s biggest downturn in a year.

Besides, followed by the release of German Industrial goods’ order data for December on Thursday (February 6th), GMT. 12.30, the bloc’s single currency extended its losing streak in to the fourth straight session, while during preparation of the report, February 6th, GMT.

17.30, euro was trading 0.17 per cent to $1.0979 against its American counterpart after drowning as much as 0.5 per cent to $1.0966, a level never seen since October 8th, 2019. So far, euro fell by as much as 1.03 per cent this week against the greenback, remarking the pair’s largest weekly decline since the week that ended on November 9th, 2019.

Apart from euro, the safe-haven Swiss Franc alongside Japanese Yen had also been scuffling for fourth straight session in a row, as the People’s Bank of China’s (China’s Central Bank) $174 billion stimulus alongside a probably remedy of coronavirus had amped up investors’ tolerance.

Swiss Franc and Japanese yen were last trading 0.18 per cent and 0.12 per cent lower against the US Dollar greenback respectively. Meanwhile, addressing to a cascade of credible responses from financial authorities across the globe to limit financial impacts of coronavirus outbreak, an FX market analyst at Monex Europe in London, Simon Harvey said on Thursday (February 6th) late-European trading hours, “A lot of the risk-off moves over the last two weeks are being unwound.

We’re seeing credible responses from monetary authorities, in China and it looks like it’s soothing market fears of a more entrenched slowdown in the Chinese economy. ”