EUR/USD Trades Bearish Ahead of Eurozone GDP Release
Arslan Butt • 1 min read
Ahead of the release of the Eurozone GDP figures, the euro is trading bearish against the US dollar over worries about a possible slowdown in economic growth. At the time of writing, EUR/USD is trading at around 1.
Markets are growing increasingly pessimistic about the health of the Eurozone economy sending the euro to the weakest level on several years against the dollar. In contrast, recent economic data releases have revealed a healthier US economy lately.
For now, the European commission is maintaining its growth forecast steady for 2020 and 2021 at 2.1%. In addition, it has also improved forecasts for inflation growth by 0.1% to 1.3% in 2020 and 1.4% in 2021.
Despite this revision market remain concerned that the recent Corona virus outbreak could prolong the slow down in the Eurozone economy, following last year’s trade tensions and Brexit uncertainties that took a toll on major European economies. Analysts have already stated that it is too soon to quantify the extent of economic damage from the coronavirus impact.