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The EUR/USD is trading near previous lows as Euro bidders seek a foothold. European numbers came in better than predicted, but they still show a sluggish home European economy. The pair has little momentum as both the US dollar and the Euro fall. At the time of writing, the pair is trading at 1.0753, up +0.10% on the day.
German factory orders increased 8.9% compared to the projected flat hold of 0.0%. Annualized European Retail Sales likewise exceeded expectations by decreasing less than predicted, down 0.8% YoY versus the projection of -0.9%.
Markets ignored a steeper-than-expected drop in MoM Retail Sales in December, which fell -1.1% versus the projection of -1.0%. Fed policymaker and Minneapolis Fed President Neel Kashkari remarked that the majority of the US’ disinflation pressure comes from a stabilized supply side and that the yield curve isn’t a reliable indicator of recession since most disinflation isn’t coming from Fed policies.
The EUR/USD pair is currently stuck near familiar bottoms in low-momentum trading, with the pair falling into near-term lows after a 1.6% backslide from last week’s peak bids. The pair is trapped on the bottom end of the 200-hour Simple Moving Average near 1.0820 and below the 1.0800 handle.
Tuesday’s flat cycle sees the pair adrift in bear country, with the immediate technical floor coming from December’s bottom bids near 1.0740.
