TOKYO- The euro declined and on track towards three-year low against the dollar. Such inactivity was recorded ahead of the highly anticipated German poll to be released on Tuesday. The said survey is expected to reveal large setback in investor sentiment and trigger pessimism on European economic forecast.
Financial markets resorted to tight ranges after the United States celebrated a holiday on Monday. In line with this, investors observed European headlines all while waiting for coronavirus crisis developments.
The euro sunk down with 0.12% loss and was last quoted at $1.0827 in Asian trading board.
Overall market sentiment for euro remained frail throughout the whole February after manufacturing and gross domestic product statistics indicated that the European zone is more susceptible to external risks than previously assessed.
“The euro is close to testing an important support level at $1.08 due to the diverging economic outlook between the euro zone and the United States,” said Junichi Ishikawa of IG Securities.
The Australian dollar fell under 67 cent mark after the release of central bank’s document reconsidering the policy easing. Chinese yuan was dragged by concerns about the implications of the coronavirus to the economy.