EUR/USD: Coronavirus spreads euro’s gap lower

EUR/USD is down this Monday, as risk aversion backs the American currency at the beginning of a new week. The pair gapped lower and bottomed at 1.0804, on weekend news indicating that the coronavirus outbreak continues to spread outside China, Valeria Bednarik of FXStreet reports. 

Key quotes

“Italy, South Korea and Iran are reporting the larger number of cases. Fears that the outbreak becomes a pandemic and hit harder global growth dominate the market.”

“The German Business Climate Survey for February showed that the index bounced to 96.1  from 95.2. The assessment of the current situation improved to 98.9 while expectations were also up, to 93.4 from 92.9.”

“The US has just released the January Chicago Fed National Activity Index, which improved to -0.25 from -0-51, also beating the market’s expectations of -0.92. The country will publish later the Dallas Fed Manufacturing Index, foreseen at 11.8 in February from -0.2 in the previous month.”