09 Jan 2025

EUR/USD has declined to 1.0310 during the early European session on Thursday. A decrease in German industrial orders for November has exerted downward pressure on the Euro. Additionally, the minutes from the FOMC indicate that Federal Reserve officials are concerned about the inflationary effects stemming from Trump's policies.

The EUR/USD pair is experiencing a decline for the third consecutive day, trading around 1.0310 during the early European session on Thursday. The negative impact of disappointing German Factory Orders for November, along with expectations of significant rate cuts by the European Central Bank (ECB) this year, is putting pressure on the Euro (EUR) against the US Dollar.

Attention will shift later on Thursday to the Eurozone Retail Sales for November and comments from Federal Reserve officials.

Unexpectedly, German Factory Orders decreased by 5.4% month-on-month in November, a significant drop compared to the previous decline of 1.5%, as reported by the Federal Statistics Office of Germany on Wednesday. This figure was notably worse than the anticipated 0% change. The disappointing economic data from Germany, the largest economy in the Eurozone, is contributing to the downward pressure on the shared currency.

Officials from the US Federal Reserve (Fed) have indicated the necessity for a cautious approach in the upcoming quarter, noting that President-elect Donald Trump's trade policy may complicate the interpretation of inflation data, as revealed in the Minutes from the Fed's December 17-18 meeting. The hawkish sentiments expressed by US central bank officials could strengthen the USD and pose challenges for the EUR/USD pair in the near future.