Investors remained hesitant to buy the Euro (EUR) at the end of the week, so the Euro US Dollar (EUR/USD) exchange rate continued to trend near its worst levels in months. Next week’s key data could cause a shift in movement if it surprises investors however.
Since opening this week at the level of 1.1945, EUR/USD has been trending with a downside bias as the US Dollar (USD) capitalises on a weak Euro.
The world’s most-traded exchange rate shed a huge cent and a half throughout the week. Yesterday, EUR/USD touched on a low of 1.1762 – the worst level for the pair since the beginning of November.
At the time of writing, EUR/USD trends in the region of 1.1778. Unless upcoming Eurozone data impresses or the bloc’s coronavirus outlook improves, the Euro to US Dollar exchange rate may struggle to recover.
Investors continue to see little reason to buy the Euro lately. The Eurozone outlook continues to be overshadowed by concerns over the coronavirus pandemic, and recent Eurozone data has done little to offset that.
Today’s German Ifo business confidence data actually beat forecasts. The expectations print in particular saw an optimistic figure of 100.4.