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EUR/USD licks its wounds near 1.0700 as bulls and bears tussle during a lethargic week characterized by lackluster data and the Fed blackout. Nevertheless, the Euro recouped some of its intraday losses late on Tuesday, but the Asian session's early morning hours continue to limit market movement.

Nonetheless, the price fell the day before due to disappointing EU data and diminishing hawkish concerns from the European Central Bank (ECB). However, a dearth of enthusiasm among US Dollar bulls supported the EUR/USD exchange rate.

In April, Germany's Factory Orders fell to -9.9% YoY, compared to -8.9% expected and -11.2% (revised). Elsewhere, Eurozone Retail Sales for April improved on a year-over-year basis to -2.6% from -3.3% (revised) previously and -3.0% anticipated, but posted a disappointing monthly figure of 0.0% compared to 0.2% market forecasts and -0.4% previous readings (revised).

In addition, the results of the European Central Bank's (ECB) monthly survey of consumer inflation expectations reveal that inflation expectations among Eurozone consumers decreased substantially in April, from 5.0% in March to 4.1% for the next 12 months. In contrast, growth expectations improved to -0.8% from -1.0% in March.

Klaas Knot, a policymaker at the European Central Bank (ECB), stated on Tuesday, "We will continue to tighten policy until inflation returns to 2%, but this must be done gradually."

On a separate page, the US Dollar Index (DXY) rose 0.13 percent on the day to 104.12 by the end of Tuesday, as a resolution to United States default fears boosted government bond offerings, but yields exhibited a mixed response, as 10-year coupons remained sluggish at around 3.69 percent while their two-year counterparts rose slightly to 4.5 percent. However, weak U.S. economic data released on Monday and previously dovish comments from Federal Reserve (Fed) Officials ahead of the pre-Fed embargo limit the US Dollar's movement.

As a result of these dividends, technology stocks remained stronger, while manufacturing stocks weighed on sentiment and reduced Wall Street's gains. Nevertheless, US stocks closed with modest gains.

German Industrial Production and US foreign trade figures adorn today's economic calendar, but major focus should be placed on risk catalysts for direction clarity.

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