Traders looking to make a profit in the Forex market can safely put their trust in the US dollar. Right now, the currency of the United States is the strongest asset, boosted by both positive economic reports and the dollar’s status of a safe haven asset, which helps attract investment amid all of the coronavirus risk aversion.
The sentiment is on the complete opposite pole where it comes to the euro. The European single currency is struggling in this high-risk environment, and the eurozone’s poor economic performance is only making things worse. Thus, today the euro reached a two-year low against the US dollar at 1.0828.
The euro’s negative results stem from disappointing fundamental reports published recently. Earlier today, Germany revealed its latest GDP numbers, which indicated that while YoY reports were better than forecasted, the QoQ reading of 0.0% was lower than the expected 0.1%, down from 0.2% in the previous report. This indicated a faster slowdown than anticipated.
Moreover, the eurozone also published its GDP and employment reports just now. The GDP report was quite damaging for the euro, showing a drop to 0.9% against an expectation of 1.0%. However, employment increased by 1%. Though this is good news, it has not been enough to offer support for the euro.
The European economy was struggling to begin with, but with last year’s worsening global economic slowdown, the trade war fears, and now with the coronavirus outbreak in China, not to mention the uncertain future relationship with the United Kingdom, the eurozone is under more pressure than ever.
