EUR/USD steady as German factory orders, Eurozone retail sales lead quiet session

EUR/USD is expected to trade in a contained range during the European session, with only second-tier data on the calendar. German factory orders and Eurozone retail sales headline the docket, but neither release carries sufficient weight to shift European Central Bank policy expectations, suggesting a muted reaction across euro crosses including EUR/USD, EUR/GBP and EUR/JPY. The ECB is widely expected to raise interest rates at its upcoming meeting, though policymakers are anticipated to accompany the move with signals of reduced appetite for further tightening. That combination — a hike paired with dovish forward guidance — limits the upside for the single currency, as markets have already priced the near-term path. Retail sales figures offer a read on eurozone consumer resilience, while factory orders provide an early indicator of German industrial momentum. With European flows subdued, direction for EUR/USD is likely to be dictated by the US session and dollar-side catalysts. Traders should expect range-bound conditions until higher-tier US data provides a clearer directional trigger.