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Euro recovers from three-year low ahead of EU forecasts

Euro recovers from three-year low ahead of EU forecasts

The 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 significantly.

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 infected.

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.

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