The EURUSD pair is eking out more losses and trades around 1.0310 at noon on Wednesday after being rejected above 1.0400 earlier in the week.
With a firm correction during the US trading session on Tuesday, it looks like Dollar bulls are dominating again.
The pair erased most of the initial weekly gains after German factory orders data for November came out. The heavily industrialised core Eurozone country saw Factory Orders shrink by 5.4% in November, compared to a 1.5% decline in October.
On a yearly basis, factory orders fell by 1.7%, compared to the rise of 5.7% last seen in October. German Retail Sales decreased by 0.6% in November, missing the positive 0.5% expectation. At least the actual number is better than the -1.5% seen in October.
The data could not have come at a worse time, given the political campaigning ahead of the German snap elections on February 23.
December’s French Consumer Confidence came in at 89, a touch lower than the 90 from November.
Eurozone Consumer Confidence for December remains unchanged at -14.5, while Industrial Confidence missed its estimate and fell to -14.1, lower than the -11.7 expected and below the revised -11.4 from November.
November Producer Price Index data for the Eurozone saw a 1.6% uptick against the previous 0.4% increase, and beating the 1.5% consensus view.
German Bunds ticked up further to hit a near-fresh six-month high of 2.517%, which is no longer far off from the 2.642% high seen in July last year.
European equities are mildly positive, beating the negative tone seen in Asia, where equities across the region are set to close in red numbers on Wednesday.
Meanwhile, markets are on edge over President-elect Donald Trump, who is further shaking up the geopolitical scene.
In a statement held at Mar-a-Lago on Tuesday, Trump reiterated his desire to incorporate Greenland, the Panama Canal, and Canada into the United States. Trump also repeated that he will address the US rates, which are too high at the moment and need to come down substantially, Bloomberg reported.
EURUSD chart by TradingView
(Source: OANDA)
