After sliding to a 16-month low on Monday, the Euro continues to trade weak against the US dollar over rising concerns of the US-China trade war and Brexit, and their impact on the Eurozone economy. At the time of writing, EUR/USD is trading at 1.093, still below the key 1.10 level.

Monday’s release of manufacturing PMI data revealed that German manufacturing sector stayed in contraction during August over weaker demand. Germany, Eurozone’s largest economy, is reeling under the effects of the trade war and Brexit, and is witnessing slowdown in economic growth, and dragging the Eurozone economy down as well.

So far this year, the Euro has already lost 4% of its value against the dollar, but as the trade war between US and China intensifies, the Euro area’s economic outlook continues to worsen further. Markets are widely anticipating that the ECB will step in and announced a 0.20% rate cut during its upcoming meeting this month.