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

Reuters

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    * 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.  urn:newsml:reuters.com:*:nL4N2AE2MU
    "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.
 urn:newsml:reuters.com:*:nL4N2AE0RT
    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%.  urn:newsml:reuters.com:*:nL8N2AE35B
    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.  urn:newsml:reuters.com:*:nL8N2AE1U1
    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.  urn:newsml:reuters.com:*:nLNSEDEGI5
    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)
 ((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; Reuters Messaging:
karen.brettell.reuters.com@reuters.net))

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