The Euro continues to face beating, on further signs of an economic slowdown. In terms of data points, they have repeatedly disappointed market expectations, as recessionary fears grow for the Eurozone.
Tuesday saw the release of a leading German economic sentiment indicator that came in weaker than projections. The data demonstrated that German investors confidence deteriorated greatly more than expected in February on worries that China’s coronavirus outbreak would dampen world trade and deepen a manufacturing recession in Germany.
As per the ZEW research institute, they detailed in the latest report that economic sentiment among investors fell to 8.7 from 26.7 in January. Markets had expected a drop to 21.5.
The survey added to fears that Europe’s biggest economy will further lose momentum in the first half of this year.
There are worries that the coronavirus, which started in China and is impacting both the global supply chain and demand from China, as a result, may see weaker German growth in the first quarter of this year.
Markets will now look forward to the manufacturing PMI data on Friday. A disappointing batch of data here could be another nail in the coffin for EUR/USD.
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