Home / Market Update / Forex Market / EUR/USD extends recent decline after German data

EUR/USD extends recent decline after German data

The EUR/USD pair fell by half a percent on Monday, reaching 12-week lows near 1.0723. The OECD predicts pan-European inflation will remain above the 2% level set by the European Central Bank until after 2025, reducing investor confidence.

The Euro’s trade balance rose to €22.2 billion after German imports fell 6.7% in December, compared to the forecast -1.5%. The HCOB Composite Purchasing Manager’s Index (PMI) also fell, reaching 47.0 versus the forecast steady hold at 47.1.

The pan-European Producer Price Index (PPI) also declined, reaching -10.6% versus the forecast -10.5%. December’s euro area retail sales are forecast to slightly increase to -0.9%, while MoM Retail Sales are expected to see accelerated declines of -1.0%.

The ECB’s latest Economic Bulletin is expected on Thursday, with investors looking for tonal shifts regarding interest rate cuts. Germany’s HICP inflation for January is forecast to hold steady at 3.1%.

Check Also

As Inflation Cools, US Stocks Surge

The US stock market experienced a significant rally on Friday, fueled by a cooler-than-expected inflation …