* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Tracking the coronavirus https://tmsnrt.rs/3aIRuz7
* Euro draws fire as focus shifts to economic outlook
* Pound slips on worries about relations with EU
* Virus still a worry as traders try to measure impact
By Stanley White
TOKYO, Feb 18 (Reuters) - The euro traded near a three-year low versus the dollar ahead of a highly watched German survey on Tuesday, which is expected to show a sharp slump in investor confidence and fuel growing pessimism about the outlook for Europe's largest economy.
Financial markets clung to tight ranges following a U.S. public holiday on Monday, shifting the investor focus to European news and developments in the coronavirus crisis.
Sterling nursed losses against the dollar and the euro due to lingering worries about economic ties between Britain and the European Union as both sides laid out conflicting views on how to proceed with trade negotiations.
In Asia, the Chinese yuan and the Japanese yen held steady as traders assessed the spread of an outbreak of a new coronavirus both inside and outside China.
Sentiment for the euro has worsened dramatically this month after weak manufacturing and gross domestic product data from Germany, Europe's largest economy, suggests that the euro zone is more vulnerable to external shocks that previously thought.
"The euro is close to testing an important support level at $1.08 due to the diverging economic outlook between the euro zone and the United States," said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.
"It looks a little oversold, so in the very short term there could be a bounce, but the euro's fundamentals still point more to the downside."
The euro was quoted at $1.0836 in Asia, close to its lowest since April 2017.
Since the start of February, the single currency has lost 2.3% versus the greenback as disappointing economic data raised concerns that euro zone monetary policy will have to remain accommodative for much longer.
The euro's next hurdle is the release of Germany's ZEW survey later on Tuesday, which is forecast to show economic sentiment slipped from the highest since July 2015.
The pound held steady at $1.3003 in Asia on Tuesday following a 0.3% decline in the previous session. Sterling was quoted at 83.30 pence per euro, nursing a 0.4% decline on Monday.
Prime Minister Boris Johnson's Europe adviser David Frost said on Monday Britain will not be threatened into following EU rules to win a free trade agreement with the bloc.