News: FOREX-Euro rebounds as U.S. stocks drop, growth concerns remain

  1. 90,025 Posts.
    lightbulb Created with Sketch. 834
    • Euro bounces as U.S. stocks decline
    • Virus concerns seen supportive of U.S. dollar

    (Adds Monday's holiday, U.S. outlook, updates prices)

    The euro bounced against the greenback on Friday as U.S. stocks declined from record highs, though concerns about growth in the eurozone are expected to keep weighing on the single currency.

    Anxiety about the impact of the coronavirus on the European economy this week helped send the euro to its lowest levels against the dollar in 2-1/2 years.

    A report on Friday that Fiat Chrysler plans to close a plant in Serbia due to a lack of parts added to fears that ties to China leave Europe's economy vulnerable.

    "We had some first indications that this might be starting to impinge on the global supply chain this morning with Chrysler shutting one of their factories in Eastern Europe because of shortage of supplies from China," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.

    The virus has infected 1,700 Chinese health workers and killed six, authorities said on Friday.

    The euro EUR= fell to $1.0826, the lowest since May 2017, before rebounding to $1.0842. It has fallen from $1.1095 on Feb. 3.

    The euro came off its lows as U.S. stocks declined from record highs reached on Thursday. A stronger U.S. economic outlook has supported the greenback, while it has also benefited from a popular trade in which investors borrow in the euro to invest in higher-yielding U.S. assets.

    Data on Friday hinted at a soft European economy. Eurozone gross domestic product grew 0.1% quarter-on-quarter in the fourth quarter, in line with forecasts, while year-on-year growth was weaker than expected at 0.9%.

    The German economy stagnated in the fourth quarter due to weaker private consumption and state spending, renewing fears of a recession just as Chancellor Angela Merkel's conservatives are preoccupied with a search for a new leader.

    U.S. data showed clothing store sales in January declining the most since 2009, which could raise concerns about the staying power of the moderate economic expansion.

    U.S. markets will be closed on Monday for the Presidents' Day holiday.

    	======================================================== 
    	Currency bid prices at 2:30PM (1930 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.0842		$1.0840	 +0.02%		 -3.30%	  +1.0861	 +1.0828 
     Dollar/Yen	   JPY=		109.7400	   109.8100	-0.06%		 +0.81%	  +109.9000   +109.7100 
     Euro/Yen		 EURJPY=	 118.98		 119.04	  -0.05%		 -2.44%	  +119.2200   +118.8900 
     Dollar/Swiss	 CHF=		0.9812		 0.9792	  +0.20%		 +1.38%	  +0.9822	 +0.9790 
     Sterling/Dollar  GBP=		1.3036		 1.3045	  -0.07%		 -1.68%	  +1.3063	 +1.3003 
     Dollar/Canadian  CAD=		1.3240		 1.3267	  -0.20%		 +1.96%	  +1.3269	 +1.3235 
     Australian/Doll  AUD=		0.6709		 0.6718	  -0.13%		 -4.44%	  +0.6731	 +0.6710 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0639		 1.0615	  +0.23%		 -1.96%	  +1.0650	 +1.0610 
     Euro/Sterling	EURGBP=	 0.8316		 0.8307	  +0.11%		 -1.63%	  +0.8344	 +0.8300 
     NZ			   NZD=		0.6430		 0.6435	  -0.08%		 -4.54%	  +0.6444	 +0.6424 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		9.2577		 9.2495	  +0.09%		 +5.46%	  +9.2703	 +9.2257 
     Euro/Norway	  EURNOK=	 10.0372		10.0298	 +0.07%		 +2.03%	  +10.0547	+10.0190 
     Dollar/Sweden	SEK=		9.7176		 9.6705	  +0.48%		 +3.96%	  +9.7256	 +9.6717 
     Euro/Sweden	  EURSEK=	 10.5371		10.4867	 +0.48%		 +0.65%	  +10.5411	+10.4850                    
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.