euro recovered from a three-year low versus the U.S. dollar on Thursday, ahead of
the release of the European Commission’s economic forecasts and amid rising fears
of the economic impact of the corona epidemic.
The EURUSD pair opened today at 1.0876, while
currently trading at 1.0879. The lowest level recorded during the session was
at 1.0865, which is considered the lowest since May of 2017.
Against the pound, the European currency was up
by 0.07 percent at 0.8394, hitting a low of 0.8382, which also considered the
lowest level in nearly three years.
The euro recovered slightly after falling as a result
to the negative data in the eurozone yesterday and as the intensifying fears of
the coronavirus boosted demand on safe havens.
Industrial production in the Eurozone fell more than
expected last December, with production of capital and intermediate goods dropping
Eurostate statistics showed on Wednesday that Eurozone
industrial production plummeted 2.1 percent in December, compared with a stall in
November, more than analyst’s expectations of fall by 1.8 percent.
Meanwhile, there are worries that Germany may be
heading for recession due to the expected negative effects on the economy due
to the Corona virus.
The European single currency has been hit hard in
recent times as investors turn to the dollar with positive data in the United
States and also as a safe haven amid the coronavirus outbreak.
As for coronavirus, the number of deaths and
infections caused by the new coronavirus in China on Thursday jumped
dramatically, with 242 deaths recorded in a single day in Hubei Province, in
addition to 15,000.
With the announcement of the new figures by The
Chinese Health Authorities, at least 1,355 people died and about 60,000 were
The Eurozone may be among the hardest hit by Corona,
as China is the third largest importer of goods and services from the bloc,
especially with no cure yet for the virus, and the first corona vaccine will be
offered within 18 months.
The EU economic
outlook is due to be released today by 10:00 GMT, where analysts expect an
upgrade in economic forecasts as the U.S-China trade war fears eased, but the
EU will highlight the impact of the coronavirus.