EUR/USD will fall back in coming sessions after its 7 days rally

The pair will fall back in coming sessions after its seven (7) days rally. The single currency benefited from the recent slump in the US indices. American companies also announced that they will miss their earnings target for the upcoming quarterly earnings report. This will further drag the already weak US indices like S&P 500, DJIA, and NASDAQ. The culprit for the sell-off was the deadly coronavirus. Analysts further warned that the COVID-19 might end the longest economic expansion in the US economy and triggers a recession. On the short-term, investors and traders will minimize their exposure to euro. The reason for this was due to the ailing EU economy. Germany’s growth for Q4 was zero (0) while France and Italy ended up in the negative territory. The three (3) largest EU economies are also in contraction with their PMI reports. The Purchasing Managers Index were at 47.8 (Germany), 49.7 (France), and 48.9 (Italy). This indicates that the European Union is in an economic contraction.