EUR/USD tests one-week low before rebound, IMF warns Europe could face risk of economic stagnation

EUR/USD is witnessing a good rebound today after testing one-week low. The pair has recovered as the US Dollar loses ground and risk appetite is slowly picking up in global equities. Euro was hit earlier as International Monetary Fund (IMF) warned that Europe could face the risk of economic stagnation if it does not take urgent measures to address slowing economic growth, weak investment, and escalating geopolitical threats. The IMF stated that barriers in the European single market are hindering economic development and recommended deepening the EU single market and increasing fiscal budgets. However, while translates into a cautious medium-term outlook for the Euro, near term dynamics are being dominated by geopolitics and some cautiousness ahead o Traders now await fresh US manufacturing and leading economic data. EUR/USD pair is currently quoting at 1.1583, up 0.34% on the day. On the NSE, EUR/INR futures are quoting at 99.86, up 0.24% on the day in an overall tight session.

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