The Euro has weakened past the key 1.08 level against the US dollar for the first time in three years as markets worry about the health of the Eurozone economy following the recent release of disappointing economic data releases. At the time of writing, EUR/USD is trading at 1.079.

So far this year, EUR/USD has declined by as much as 3.5% and was pushed further lower in the previous session after the German investor sentiment index came in lower than expected, adding fuel to the fire. In contrast, the US economy continues to be performing well despite the external risks, driving the US dollar stronger and causing further bearishness in this pair.

The Eurozone economy has been weakening in the wake of global trade tensions through 2018 and 2019, and was expected to stage a bit of a recovery this year after the US and China signed the phase one trade agreement. However, the coronavirus hit global markets hard and upset plans for recovery, adding one more cause for concern not just for the Europe’s economy but for the global economy as well.

The US dollar has been gaining strength lately as a safe haven currency as a result of the uncertainties plaguing markets. Analysts are expecting the Euro to slide even lower, and touch a 17-year low level of around 1.03 against the dollar because of the continued downside risks.