The downward momentum of the EUR/USD pair has come to a pause.

On Wednesday, the primary currency pair exhibits a more stable performance compared to the previous day, with the current EUR/USD exchange rate standing at 1.0763.

While the US dollar remains close to its three-month highs, its aggressive stance has softened, experiencing nearly a 1.5% decrease over the past two days.

The easing pressure on the EUR/USD pair is attributed to declining yields on US treasury bonds.

Retail sales in the eurozone recorded a 0.8% year-on-year decline in December, following a 1.1% drop the previous month, contrary to the anticipated more significant decrease. This unexpected trend may act as a localized inflationary indicator and subtly impact the EUR negatively.

With little notable statistical data currently released, attention is directed towards the US trade balance report for December scheduled for today.

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