eur-bank-notes-magnifying-glass - EUR

The euro is consolidating losses after falling its lowest level since 2017 on Wednesday. The euro dropped to nadir of US$1.0865 as the slump in the common currency appears to be gaining momentum. The euro US dollar closed the previous session just above the low of the day after losing 0.4%.


The euro has shed over 3% versus the dollar so far this year amid growing concerns over the health of the eurozone economy, fears that the German economy could be heading for recession and worries surrounding German Chancellor Angela Merkel’s succession plan.

Data in the previous session revealed that Eurozone industrial output slumped -2.1% month on month in December, down from a 0.2% increase in November. Annually industrial output dived -4.1%, significantly off the -1.7% decline pencilled in.

Data last week showed that the slump in the manufacturing sector in Germany was still in full swing. Yesterday’s data confirms the bloc is in a similar position. Add in concerns that coronavirus will also have a slowing impact and economists are starting to lower German GDP expectations. A German recession is not a distant possibility. Fourth quarter German GDP data is due for release on Friday.

Today investors will look towards German inflation data. Analysts are forecasting that consumer prices remained steady in January at 1.7%.

US Dollar

The dollar traded on the front foot in the previous session as Federal Reserve Chair Jerome Powell gave his second testimony before Congress. US dollar investors also digested stronger mid-tier data.

Today the dollar is trading broadly higher versus its peers as flows into safe havens are on the rise following the deadliest day in the coronavirus outbreak. The number of deaths in the Hubei province jumped by 242, whilst the number infected also climbed by 14,860 as China altered the way that it diagnosed cases.

US inflation data could boost the dollar further today. Analysts are expecting inflation to increase 0.3% month on month in January, up from 0.2% the previous month. On an annual basis inflation is expected to rise to 2.5% up from 2.3%. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.