In the middle of the week, EURUSD remains under the bearish influence. The current quotation is 1.0800. In the morning, the instrument was breaking this level and entering the area of 1.0795.
The weak European statistics is acting against the euro. In fact, it gives investors little hope for soon restoration of the economies of the Old World. For example, the business confidence index in Germany, published by ZEW institute yesterday, showed a decline of 8.7 points in February from the result of 26.7 points in January. For the whole European area, this index fell by 10.4 points in February against the result of 25.6 points in January.
The market is thinking as follows: trading links between Europe and China are quite strong, which means the coronavirus influence will be painful. This will inevitably be reflected in the statistics of the first quarter of 2020 and, most likely, – in the key data of the first six months.
Apart from this, a lack of impulse in German economy, which is the leader of European economies, makes us think about the perspectives. In these circumstances, the decline of the euro looks quite natural.
Meanwhile, the US is planning to publish interesting statistics today. What will be published is, first, the number of house foundations laid in January, where the results might have worsened, and the number of construction permission granted, where the results might be cheering. However, the main attention will be attracted by the minutes of the previous session of the Fed. The dollar is currently strong, and if there will be nothing shocking about the changes of the rate in the protocols, it will remain strong.