The euro dove at the end of last week’s session as the Eurozone reported a sharp drop in GDP in the second quarter.
The single currency also found support on the back of the German consumer price index, which saw a better-than-expected uptick on the month in February.
Even so, with the Italian economy looking at increasing risk of contracting in the face of the Covid-19 outbreak worries over the outlook of the currency union remained.
With global trade disruption appearing on course to worsen in the final month of the first quarter the risk of a potential Eurozone slowdown limited the potential for euro gains.
However, EUR exchange rates could still find a boost on the back of January’s German factory orders figure.
As long as orders show a significant rebound on the month as forecast this could shore up confidence in the underlying health of the Eurozone’s powerhouse economy, putting a floor under the euro.
If markets see heightened odds of the European Central Bank (ECB) loosening monetary policy further in response to the outbreak, though, any demand for the single currency may prove muted.
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)