EUR/USD faces pressure as Spain manufacturing PMI disappoints at 49.2

EUR/USD is experiencing downward pressure following Spain's January manufacturing PMI reading of 49.2, slightly below the expected 49.3 and down from December's 49.6. The data reveals Spain's manufacturing sector remains in contraction territory for another month, with the steepest decline in new orders seen in nine months. Export volumes showed accelerated deterioration, contributing to broader weakness in the eurozone's fourth-largest economy. While output conditions stabilized, intensifying cost pressures prompted cuts across purchasing, inventories, and employment. This disappointing Spanish data adds to concerns about eurozone economic momentum, particularly as the ECB maintains its cautious stance on policy easing. Technical indicators suggest EUR/USD could test support at 1.0800 if weak manufacturing data persists across other eurozone nations. Traders await Germany's manufacturing PMI later today for further directional cues on the single currency's near-term trajectory.