Anticipated further deterioration in consumer confidence in Germany is influencing the EUR/USD, which remains in negative territory below 1.0850 early on Friday.

The GfK Consumer Confidence Index for Germany is expected to decline to -29.7 in February, down from -25.4 in January, marking a more significant drop than the market’s anticipation of -24.5.

Analyzing the survey’s results, Rolf Buerkl, a consumer expert at the GfK Institute and the Nuremberg Institute for Market Decisions (NIM), commented, “If there were any hopes of a sustained recovery in sentiment, these were dashed in January.” He noted that the consumer climate experienced a significant setback at the beginning of the year. The negative trend in consumer sentiment is contributing to the ongoing challenges for the EUR/USD pair, which is struggling to regain positive momentum.