The euro weakened on Tuesday after data revealed a larger-than-expected drop in German factory orders. This fueled concerns about the health of the Eurozone’s economic powerhouse.

German factory orders fell by 0.1% in July, according to the Federal Statistics Office. This was below expectations of a 0.3% increase. The prior month’s reading was also revised down to a 4.0% decline.

The disappointing figures added to worries about the impact of global trade tensions on the German economy, which is heavily reliant on exports.

Analysts are closely monitoring upcoming economic releases from the Eurozone for further indications of the region’s economic trajectory. Key data points include industrial production figures and consumer confidence surveys.

The euro’s decline was most pronounced against the US dollar. The EUR/USD pair traded down to a low of 1.1580 following the release.

The European Central Bank (ECB) is scheduled to hold its next policy meeting later this month. Market participants will be scrutinizing the ECB’s assessment of the economic outlook and any signals regarding future monetary policy decisions.