The disappointing economic data raised concerns the eurozone monetary policy will most probably remain accommodative much longer. Thus, from the beginning of February, the single currency has lost 2.4% versus the dollar.
On Tuesday, officials released Germany’s ZEW survey. The survey showed economic sentiment slipped from the highest since July 2015. That information is the next hurdle for the euro.
There are worries about economic ties between the European Union and Britain. Both sides have conflicting views concerning how to proceed with trade negotiations. Thus, against the euro and the dollar, sterling also nursed losses.
Following a 0.3% decline in the previous session, the pound held steady at $1.2998 in Asia. Nursing a 0.4% decline on Monday, sterling was quoted at 83.33 pence per euro.
David Frost is Prime Minister Boris Johnson’s Europe adviser. He said on Monday that Britain would not be threatened into following European Union rules for winning a free trade agreement with the bloc.
Dollar and Euro
Frost’s comment doesn’t come in line with those of European Commission President Ursula von Deyen’s. She promised Britain to guarantee fair competition based on labor and ambitious environmental standards.
Last month Britain left the European Union. Now, both countries will start to negotiate on a new relationship from trade to security.
Apple Inc announced it wouldn’t meet sales targets due to the virus epidemic that has slowed production and demand in China. Thus, it was unsettled by a decline in Chinese shares.
Versus the dollar, the onshore yuan was a tad lower at 6.9859.
The epicenter of the coronavirus outbreak is the Hubei province of China. The region announced that the cases of the illness fell slightly to 1,807 on Monday from 1,933 the previous day.
There is uncertainty about the actual number of difficulties and cases in estimating when the epidemic will peak. Thus, currency traders are cautiously monitoring new data.
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