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The weakness of the euro results to a gradual bearish fall by the EURTRY pair. It is believed that the pair will extend lower to its support levels by the end of February as the bloc’s single currency gets more and more exposed to negativity. The concerns of investors about the overall health of the eurozone economy is pressuring the single currency, preventing it from fully recovering against the Turkish lira. Aside from that, pessimistic sentiment around the coronavirus continues to take a toll on the bloc’s single currency, making it more difficult to maneuver in forex sessions. To make matters even worse, the eurozone’s economies are showing signs of exhaustion, recording poor figures in its recent reports last week. Later today, bulls are expecting to receive leverage or help from the one-week repo rate for February from the European Central Bank. But if the ECB doesn’t deliver against expectations, the pair would continue to plummet.
The euro collapsed, loosing all its impressive gains from the first month of the year in its recent drops. To make things more alarming, the pair is still expected to continue plummeting as the euro hits a block and weakens due to concerns about the health of the eurozone economy. Policy makers from the bloc, along with financial market experts, are warnings about the threat brought by the coronavirus to the world’s second largest economy and the global economy. Weak economic activities also fail to prop the euro in the foreign exchange scene, resulting to the Hungarian forint’s speedy recovery. Investors aren’t delighted by the German GBP growth for that was released last Friday along with the Spanish consumer price index which flatlined for January. On top of that, the eurozone also released the employment change results and the gross domestic product growth for the fourth quarter of 2019, showing dull figures that weighed heavily on the single currency.
Despite the euro’s relatively weak performance in the market, the Russian ruble only managed to slightly pull it lower, failing to take advantage of the moment. But, unfortunately for the bloc’s singe currency, the EURRUB pair is still expected to take a dive and extend lower to its support levels before the month ends. The turbulence faced by the euro will be its main downward directional driver. Uncertainties around the euro can be traced from the concerns brought by the deadly Covid-19 to investors, the alarmingly weakening health of the bloc’s economies, and the geopolitical problems such as budgeting after the Brexit. Looking at it, the Russian ruble is also pressured by the concerns of bears about the virus that is rapidly spreading across its neighbor, China. Lackluster results from the Russian economy is also preventing the Russian ruble from running away against the single currency in forex sessions.
Despite the gradual growth from the Polish economy and the pressure faced by the single currency, the EURPLN pair is only recording minimal movements. Still, the pair is still widely expected to continue its gradual decline and reach its support levels by the end of the month. Bulls remain very concerned about the health of the eurozone which adds to the weight on the back of the single currency. Meanwhile, the Polish consumer price index for January is immediately countered by the country’s gross domestic product growth. Last week, it was reported that the Polish CPI for January grew by 3.4% prior to 4.4% on a year-over-year basis, exceeding forecasts of 4.2%. On the other hand, Poland’s GDP dropped from 1.3% prior to 0.2%. It’s worth to mention the recent gross domestic product growth of the eurozone also showed stagnant and dull figures, making it bad also for the single currency in sessions.