The Euro was trading near to a 3-year low against the greenback as FX traders await the latest economic news. Against the US Dollar, the Euro has depreciated nearly 3.4% since the beginning of the year, largely on disappointing economic data which has fueled expectations that the European Central Bank will be compelled to maintain its ultra loose monetary policy. The German ZEW survey of investor confidence was released earlier today, and analysts had predicted it would show February’s economic sentiment declining, down to 21.5 from 26.7; the actual reading came in at a dismal 8.7.
The ZEW current situation was also expected to have weakened and, indeed, it came in at -15.7 against an expected decline to -10.3 (from -9.5).
As of 10:01 am in London, the EUR/USD was trading at lower at $1.0823, down 0.1264%; the pair has ranged from a high of $1.08395 to a low of $1.08210. The EUR/GBP was also lower at 0.8328 Pence, down 0.0744%.
In Australia, the central bank minutes showed policy and interest rates to continue at existing levels; according to the statement issued by the Reserve Bank of Australia, they are prepared to move to an even looser policy, if the situation warrants. The Aussie Dollar, and most high-risk assets, have been weighed heavily by the Coronavirus outbreak in China which is threatening the Chinese economy. The Chinese central bank and the government are making every effort to minimize the impact the virus spread will have but some analysts are doubtful that those efforts will be sufficient. The AUD/USD was trading lower at $0.6675, down 0.5913% and off the session trough of $0.66734 while the peak was recorded at $0.67176. The NZD/USD was also lower at $0.6395, a loss of 0.6709%; the pair has ranged from $0.63937 to $0.64437 in this session.