Ella 
EUR/USD fell slightly in early Asian trading on Monday. EUR/USD is weighed down by rising demand for the U.S. dollar (USD). Affected by the macro outlook, the euro’s upside appears to be limited. EUR/USD is currently trading around 1.0935, with an intraday decline of 0.08%.
The German economy has slowed moderately since the second half of the year. The Statistics Office announced on Friday that Germany’s gross domestic product (GDP) shrank at a quarterly rate of 0.1% in the third quarter, while GDP shrank at an annual rate of 0.4%, compared with a 0.3% decline in the previous period. European Central Bank (ECB) Vice President Luis de Guindos said on Friday that risks to the European economic outlook are tilted to the downside. De Guindos further pointed out that inflation may rise again in the coming months, but maintaining current interest rates for longer can control inflation. Downside risks to growth in Germany, Europe’s largest economy, could put some selling pressure on the euro (EUR) and be negative for EUR/USD.
Separately, Germany’s Constitutional Court ruled last week that it was illegal to reallocate unused debt initially allocated to emergency funds during the coronavirus pandemic to current spending plans. This leaves a €60 billion shortfall in government budgets, hitting climate policy particularly hard, CNBC reported.
In the United States, the S&P Global Composite Purchasing Managers’ Index was unchanged at 50.7 in November. Meanwhile, the manufacturing PMI fell to 49.4 from 50.0, below expectations of 49.8. The services purchasing managers index increased slightly to 50.8 from 50.6 last month, higher than the expected value of 50.4.
Market participants will focus on the euro zone’s consumer confidence index for November due on Wednesday. German retail sales, consumer price index (CPI) and the euro zone Harmonized Consumer Price Index (HICP) will be released on Thursday. On the U.S. front, housing data, consumer confidence, gross domestic product and the ISM manufacturing PMI will be released. Traders will look for EUR/USD trading opportunities here.
