The euro starts the day on the back of six straight days of losses. Recent poor economic data releases and an increasing concern for the impact of the coronavirus have levied against the single currency, leading to a mass sell-off from investors. The euro will be hoping to find a rallying point later today when the European Commission announces its economic growth forecasts. The 2020 GDP growth forecast from the ECB last July saw the figure lowered slightly to 1.4%. Investors will hope that the forecast will not send off any dovish tones from the European Commission as the euro looks to find a way out of its downward spiral.
Recent Run of Poor Economic Data Has Left the Euro Dwindling
The euro hit its sixth straight day of losses yesterday as it looks to today’s European Commission Growth Forecast for a rallying point. Last week’s data releases were not kind to the EUR as German industrial production figures knocked the euro as the German retail sales also declined. These figures were also not inclusive of the impact that the coronavirus could have on the economy, which may leave the door open for further losses. The coronavirus has played a huge role in many currencies’ performances over the past weeks, and the full effects may not yet been felt by the respective currency economies. Worry and fear can be a powerful driver of currency flows and with the number of cases of the coronavirus increasing within the Eurozone, the economy is awaiting the impact it will have.
Euro Could Rise or Fall Further on ECB’s Economic Growth Forecasts
The ECB will give its forecast on the Eurozone’s economic growth predictions for the upcoming year. The announcement is set to be released at 10:00am GMT. Should the prediction be in favour of the euro, it could give the single currency a rally point before its more important GDP data later in the week. Looking further ahead, later this week the Eurozone will see the release of its more important GDP figures for Q4 of 2019, with industrial production numbers for the Eurozone coming on Thursday and GDP values on Friday. The latter stage of the week will be the defining time for the euro as poor returns on these figures would join last week’s poor German data, with changes to consensus figures potentially causing volatility for the EUR. Investors will be hoping for a shock spike in values to give the euro a chance to battle amongst the top currencies once more.
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