Asian session review: the US dollar continues to consolidate near a 3-year high against the euro

During today's Asian trading, EUR/USD continued to remain near a 3-year high. Investors ' attention is focused on important market data from Germany, which is scheduled for publication on Tuesday.

The index of economic expectations of investors and analysts in Germany for the next 6 months, which is calculated by the ZEW research Institute, fell in March to 21.5 points compared to 26.7 points in the previous month, experts predict. Pessimism about the European economy has a negative impact on the Euro, and new negative data may increase pressure on the currency.

The yen strengthened against the us dollar, and reached a high on February 13

On Monday, "very bad data on Japan's GDP was published, but it is assumed that this is mainly due to the increase in the consumption tax from October, which shifted demand to the previous quarter, as well as a strong Typhoon," Saxo Bank said in a press release.

"Nevertheless, such a weak value once again shows the need for stimulus measures," the Bank's analysts believe. "More interesting is what will happen to the data for the first quarter in connection with the COVID-19 epidemic."

The Japanese economy in the 4th quarter fell at the highest rate in 5.5 years following the increase in the consumption tax in the country - by 6.3% compared to the same period in 2018. The reduction in GDP occurred for the first time since the 3rd quarter of 2018.

Experts warn that the country's economy may also decline in January-March 2020 due to the spread of the coronavirus. A fall in GDP for two consecutive quarters would mean a technical recession.

The ICE Dollar index, which shows the value of the US dollar against six major world currencies, rose 0.16% from the previous day.