Fundamental Comment

Euro falls amid downbeat industrial data from Germany, France

Euro falls amid downbeat industrial data from Germany, France

The euro currency slumped during Friday’s trading, extending its losses for a fifth straight session, after the release of downbeat data from Germany and France economies and amid the continuing fears associated with the spread of the coronavirus.

The EURUSD pair hit a new low today at 1.0947, the lowest since October 8 last year, while currently trading at 1.0953. Against the pound, the European currency was down by 0.16 percent at 0.8477.

The EURUSD has continued its downward trend since Monday's trading, after hitting a high of 1.11095 last Friday, as strong demand on the US dollar pushed the green currency to new highs in 2020.

According to the data Issued by the Bureau of Statistics, German industrial production fell by -3.5 percent, well below expectations of -0.2 percent, the lowest rate recorded by the index since January 2009, while November reading was revised up to 1.2 percent.

In France, industrial production contracted by 2.8 percent in January, worse than market expectations of -0.3 percent, and worse than the previous reading, which showed 0.3 percent advance.

For his part, the governor of the Central Bank of France Villeroy said that the contraction of GDP during the last quarter was temporary and that the French economy will return to growth again to 0.3 percent in the coming period.

Later in the day, global financial markets are looking ahead to the most influential U.S. labor market data that mainly shapes the rate decisions by the Federal Reserve.

Analyst are in favor of seeing a job creation of 160,000 in January after a job-gain of 145,000 in December, while the unemployment rate may have stabilized at 3.5 percent.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, surged 0.07 percent at 98.46, the highest level since June 2017.

Regarding the latest updates about the coronavirus, Japanese officials said on Friday that 61 coronavirus cases were reported on a quarantined cruise ship in Yokohama, marking a sharp rise from the 20 confirmed cases on Thursday.

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