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Euro Falls As Coronavirus Fears Linger

The euro declined against its major opponents in the early European session on Monday, as concerns over the impact of the outbreak of coronavirus dampened risk sentiment.

The head of the World Health Organization said the thousands of coronavirus cases in the Chinese city of Wuhan, the center of the epidemic, is likely "just the tip of the iceberg."

"There have been some concerning instances of onward 2019nCoV spread from people with no travel history to China. The detection of a small number of cases may indicate more widespread transmission in other countries," tweeted Ghebreyesus, Director-General of the WHO.

"In an evolving public health emergency, all countries must step up efforts to prepare for 2019nCoV's possible arrival and do their utmost to contain it should it arrive. This means lab capacity for rapid diagnosis, contact tracing and other tools in the public health arsenal," he said.

The death toll totaled 908 and the number of confirmed cases has risen over 40,000, according to the World Health Organization.

Survey from the behavioral research institute Sentix showed that Eurozone investor sentiment eroded in February, after rising in the previous three months, as investor grew concerned about the economic outlook amid the uncertainty created by the coronavirus outbreak in China.

The investor confidence index dropped to 5.2 from 7.6 in December.

The euro edged down to 0.8476 against the pound, from a 6-day high of 0.8504 seen at 2:45 am ET. The euro is seen finding support around the 0.83 region.

The euro pulled back to 1.0945 against the greenback, from a high of 1.0958 set at 12:00 am ET. The next possible support for the euro is seen around the 1.08 level.

The euro eased to 1.0696 against the franc, down from a 4-day high of 1.0714 hit at 9:30 pm ET. On the downside, 1.06 is possibly seen as the next support level for the euro.

The euro retreated to 120.13 versus the yen, not far from a 1-week low of 119.97 recorded in the previous session. If the euro extends decline, 118.00 is possibly seen as its next support level.

Data from the Ministry of Finance showed that Japan posted a current account surplus of 524.0 billion yen in December - up 12.8 percent on year.

That exceeded expectations for a surplus of 464.7 billion yen following the 1,436.8 billion yen surplus in November.

The euro was trading at 1.7078 versus the kiwi, down from a 6-day high of 1.7125 set at 7:15 pm ET. Further downtrend may take the currency to a support around the 1.68 region.

The euro fell to near a 2-week low of 1.4548 versus the loonie and held steady thereafter. The pair had finished Friday's deals at 1.4563.

The single currency held steady against the aussie, after falling as low as 1.6331 at 1:15 am ET. At Friday's close, the pair was worth 1.6398.

Looking ahead, Canada housing starts for January are set for release at 8:15 am ET.

Fifteen minutes later, Canada building permits for December will be released.

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