The single European currency managed to pull back from the brink on Wednesday after it hit one of its worst performances in years.
The currency delivered its worst performance in three years earlier in the week and went below the $1.08 level in its pair against the US dollar.
This came after an economic data release suggested that the Eurozone’s largest economy, Germany, was in serious economic trouble.
The data release came out on Tuesday and was from the ZEW research centre.
The ZEW claimed that investment sentiment was much further down this month than had been previously predicted.
It linked the decline to fears about the Chinese coronavirus, which as yet shows no signs of reducing its salience to traders.
However, the euro managed to crawl back up above this significant $1.08 level on Wednesday.
It was spotted up by 0.13% by Wednesday morning in its pair with the US dollar and was seen at $1.0805 at one stage.
However, the currency is still highly volatile – with the one-month implied volatility calculation for the EUR/USD pair seen at its highest for about a month and a half.
There was some good news for other global currencies, however.
In China, one report suggests that the smallest day-on-day rise in fresh coronavirus cases since towards the end of January was revealed.
It is understood that the Chinese government is debating giving cash to airlines in the country – or, even, merging them.
The airline industry is just one sector that has suffered as a result of the spread of the disease.
This double whammy of relatively good news meant that some currencies which had previously suffered due to worries over the virus were able to rise.
The Australian dollar was one such currency.
This currency is linked to the fortunes of China because of the trading connection between the countries.
The good news out of China meant that the Aussie rose on Wednesday by around 0.15% in its pair against the US dollar.
It was seen at $0.6697 at one point.
In New Zealand, the rise was even higher at a fifth of a percentage point.
The Japanese yen, which has done relatively well recently due to the increase in uncertainty which occurred as a result of the coronavirus’ spread, was down by 0.2% or so against the greenback at one point on Wednesday.
It was spotted at 110.08 in its pair with the US dollar at one stage.
The British pound started the day with little change in its pair against the US dollar, where it was seen at $1.2993.
It had a good start to the week after the country’s new chancellor of the exchequer, a position which is equivalent to that of finance minister, said that the country’s budget would happen as planned in March.
The key event for the forex markets to contend with later in the day, however, looked set to be the release of minutes from the US Federal Reserve’s meeting last month.
These looked set to come out at 7pm in the GMT time zone.