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

Published 02/15/2020, 03:50 AM
Updated 02/16/2020, 11:40 AM
© 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

(Adds Monday's holiday, U.S. outlook, updates prices)
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.
The euro EUR= fell to $1.0826, the lowest since May 2017, before rebounding to $1.0842. 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
A stronger U.S. economic outlook has supported the greenback, while it has also benefited from a
popular trade in which investors borrow in the euro to invest in higher-yielding U.S. assets.
Data on Friday hinted at a soft European economy. Eurozone 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. 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. U.S. markets will be closed on Monday for the Presidents' Day holiday.

========================================================
Currency bid prices at 2:30PM (1930 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0842 $1.0840 +0.02% -3.30% +1.0861 +1.0828
Dollar/Yen JPY= 109.7400 109.8100 -0.06% +0.81% +109.9000 +109.7100
Euro/Yen EURJPY= 118.98 119.04 -0.05% -2.44% +119.2200 +118.8900
Dollar/Swiss CHF= 0.9812 0.9792 +0.20% +1.38% +0.9822 +0.9790
Sterling/Dollar GBP= 1.3036 1.3045 -0.07% -1.68% +1.3063 +1.3003
Dollar/Canadian CAD= 1.3240 1.3267 -0.20% +1.96% +1.3269 +1.3235
Australian/Doll AUD= 0.6709 0.6718 -0.13% -4.44% +0.6731 +0.6710
ar
Euro/Swiss EURCHF= 1.0639 1.0615 +0.23% -1.96% +1.0650 +1.0610
Euro/Sterling EURGBP= 0.8316 0.8307 +0.11% -1.63% +0.8344 +0.8300
NZ NZD= 0.6430 0.6435 -0.08% -4.54% +0.6444 +0.6424
Dollar/Dollar
Dollar/Norway NOK= 9.2577 9.2495 +0.09% +5.46% +9.2703 +9.2257
Euro/Norway EURNOK= 10.0372 10.0298 +0.07% +2.03% +10.0547 +10.0190
Dollar/Sweden SEK= 9.7176 9.6705 +0.48% +3.96% +9.7256 +9.6717
Euro/Sweden EURSEK= 10.5371 10.4867 +0.48% +0.65% +10.5411 +10.4850

(Editing by David Gregorio and Richard Chang)

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