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FOREX-Euro rebounds as U.S. stocks drop, growth concerns remain

Published 02/14/2020, 11:27 PM
Updated 02/14/2020, 11:32 PM
© Reuters.  FOREX-Euro rebounds as U.S. stocks drop, growth concerns remain
EUR/USD
-

* Euro bounces as U.S. stocks decline
* Virus concerns seen supportive of U.S. dollar

(New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, Feb 14 (Reuters) - The euro bounced against the
greenback on Friday as U.S. stocks declined from record highs,
though concerns about growth in the eurozone are expected to
keep weighing on the single currency.
Anxiety about the impact of the coronavirus on the European
economy this week helped send the euro to its lowest levels
against the dollar in 2-1/2 years.
A report on Friday that Fiat Chrysler plans to close a plant
in Serbia due to a lack of parts added to fears that ties to
China leave Europe's economy vulnerable. “We had some first indications that this might be starting
to impinge on the global supply chain this morning with Chrysler
shutting one of their factories in Eastern Europe because of
shortage of supplies from China,” said Shaun Osborne, chief FX
strategist at Scotiabank in Toronto.
The virus has infected 1,700 Chinese health workers and
killed six, authorities said on Friday. Data also hinted at a soft European economy. Euro zone gross
domestic product grew 0.1% quarter-on-quarter in the fourth
quarter, in line with forecasts, while year-on-year growth was
weaker than expected at 0.9%. The German economy stagnated in the fourth quarter due to
weaker private consumption and state spending, renewing fears of
a recession just as Chancellor Angela Merkel's conservatives are
preoccupied with a search for a new leader. The euro EUR= fell to $1.0826, the lowest since May 2017,
before rebounding to $1.0856. It has fallen from $1.1095 on Feb.
3.
The euro came off its lows as U.S. stocks declined from
record highs reached on Thursday. .N
U.S. data showed clothing store sales in January declining
the most since 2009, which could raise concerns about the
staying power of the moderate economic expansion. Currency bid prices at 9:59AM (1459 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0856 $1.0840 +0.15% -3.16% +1.0861 +1.0828
Dollar/Yen JPY= 109.7100 109.8100 -0.09% +0.78% +109.9000 +109.7100
Euro/Yen EURJPY= 119.12 119.04 +0.07% -2.32% +119.2200 +118.8900
Dollar/Swiss CHF= 0.9803 0.9792 +0.11% +1.29% +0.9818 +0.9790
Sterling/Dollar GBP= 1.3021 1.3045 -0.18% -1.80% +1.3063 +1.3003
Dollar/Canadian CAD= 1.3248 1.3267 -0.14% +2.02% +1.3269 +1.3235
Australian/Doll AUD= 0.6716 0.6718 -0.03% -4.34% +0.6731 +0.6710
ar
Euro/Swiss EURCHF= 1.0647 1.0615 +0.30% -1.89% +1.0650 +1.0610
Euro/Sterling EURGBP= 0.8335 0.8307 +0.34% -1.41% +0.8344 +0.8300
NZ NZD= 0.6436 0.6435 +0.02% -4.45% +0.6444 +0.6424
Dollar/Dollar
Dollar/Norway NOK= 9.2333 9.2495 -0.18% +5.18% +9.2703 +9.2257
Euro/Norway EURNOK= 10.0257 10.0298 -0.04% +1.91% +10.0547 +10.0190
Dollar/Sweden SEK= 9.6928 9.6705 +0.36% +3.70% +9.7072 +9.6717
Euro/Sweden EURSEK= 10.5249 10.4867 +0.36% +0.53% +10.5285 +10.4850

(Editing by David Gregorio)

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