On Monday, the 17th of February 2020, the bloc’s common currency, euro had wrapped up the day just a notch shy of its three-year-low against its American counterpart as investors remained fretted over eurozone's business outlook alongside a dwindling global demand, nonetheless, China’s diabolical approach to contain the virus outbreak appeared to be acting as a solacing go-between for the FX market and calming down a steep fallout of Australian dollar alongside Chinese Yuan.
Although, over the past two weeks, euro, the common currency of 19 EU nations had shrugged off more than 2.3 per cent to a near three-year low figure of 1.0834, the bloc’s common currency could witness further downward spiral over the coming days as investors were keeping a close eye on eurozone manufacturing PMI (Purchasing Managers’ Index) data scheduled to be released on Friday (February 21st), suggested analysts.
On top of that, hinting that the latest bearish trend of euro might persist for a longer period unless a miraculous remedy for global economic demand which was being hurt grievously amid a fast-spreading coronavirus outbreak in China, top European leaders had cautioned last week that the world should brace for impacts of an unprecedented and havoc-scale global economic slowdown.
Meanwhile, underscoring possibilities of a continuation of downward trend for the bloc’s single current, ING analysts wrote in a client note, “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.
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. ”