The Euro is still trading under pressure against the US dollar into Friday, continuing weakness from the previous session following the release of disappointing PMI data which indicated a severe contraction in Eurozone’s economy. At the time of writing, EUR/USD is trading around 1.076.

Eurozone’s PMI readings came in at historic lows, indicating severe contraction in business activity across the manufacturing and services sectors. The Eurozone economy had already been showing signs of strain through last year as a result of global trade tensions, and the present coronavirus crisis has worsened the outlook for the region’s economy, as it has for most of the world.

EUR/USD has also been weakening lately as the US dollar continues to strengthen as a safe haven currency amid rising fears of a deep recession in the global economy due to the coronavirus pandemic. Economists have revised their estimates for the global economy lower as the number of coronavirus cases continues to climb higher and countries remain in shutdown mode, driving additional strain on their economies.

In addition, EUR/USD has also turned bearish after EU leaders failed to come to a consensus during a discussion about a rescue package for the region in the aftermath of the pandemic. EU countries are split on the issue of jointly issued debt, something that the worse affected nations like Italy and Spain are interested in but other nations like Germany, Sweded and the Netherlands are against.