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The Euro extends losses after weak German factory orders
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Sluggish Eurozone data increases hopes of ECB rate cuts on early 2024
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The EUR/USD approaches an important support area at 1.0750.
The Euro remains offered on Wednesday’s European market opening times. German Factory orders have disappointed, increasing concerns about a deep recession in the Euro Area and adding negative pressure on the Euro.
German factory data weighs on the Euro
After rising 0.2% in September, new orders for manufactured goods in Germany fell 3.7% in October, against market expectations for a flat performance.
The figures come after the region’s services PMI revealed that sector activity contracted for the fourth straight month in November, posing a serious challenge to the ECB’s monetary tightening plan.
Later today, retail sales are expected to have improved moderately over the past month, which could give some respite to a battered euro, although the market’s main focus is the US ADP data, due at 12:15 GMT today.
The euro might find some buyers at 1.0750
The near-term bias remains bearish although the confluence of the 4h 200 SMA with a previous resistance area at 1.0750 might provide some support to the Euro. Below here, the next target would be 1.0660
Resistances are at 1.0850 and 1.1010.
