The euro dove at the end of last week’s session as the Eurozone reported a sharp drop in GDP in the second quarter.
Initially the euro shot higher, with demand for the single currency being buoyed by a weaker US dollar as well as hopes that Eurozone governments are preparing to implement fiscal stimulus measures to help counteract the impact of the coronavirus.
However the single currency started to face some headwinds in the latter half of the week after Italy, the centre of Europe’s coronavirus outbreak, announced it would be shutting all schools and restricting public events.
This stoked concerns about disruption to Italy’s already weak economy.
With Italy taking even more drastic measures to stop the spread of the coronavirus and quarantining over 16 million citizens over the weekend, the euro may be undermined this week by increased concerns that parts of the Eurozone is on the brink of falling into a recession.
The real focus however will be on the European Central Bank (ECB) as it concludes its latest policy meeting on Thursday.
EUR investors will be eager to see how the ECB plans to confront the economic threat posed by the coronavirus.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)