Fundamental Comment

Euro widens losses after gloomy confidence report

Euro widens losses after gloomy report

The euro widened its losses on Thursday after a report showing economic confidence in the euro are fell for nine straight months in March.

The euro is meanwhile trading lower at $1.1226, extending its drop for a third consecutive session, compared to the session’s open at $1.1251.

Data released today showed that the European Commission’s economic sentiment gauge slipped to 105.5 in March, the lowest level since 2016, from 106.2 in February.

The gloomy report added to growth concerns in the 19-nation region, following a cut in the region’s growth outlook by the ECB this month.

Investors have triggered risk-off mode since early trading on global growth worries and Brexit uncertainty, ahead of the resumption of trade talks between the U.S. and China later in the day.

U.S. trade Representatives will start an eighth round of trade talks with their Chinese counterparts in Beijing, where markets expect the deal would not be reached before few weeks due to the persistence of some unresolved issues.

The dollar index traded higher at 96.66, the highest level in almost two weeks, as it played its safe haven role.

Later in the day, investors will focus on the final fourth-quarter GDP reading from the world’s biggest economy.

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