The Euro came under pressure in Wednesday's trade as data from Germany indicates the country's economic downturn may not be over.

Germany factory orders fell 3.7% month-on-month in October, according to Destatis, dashing forecasts of 0.2% growth.

This is also a steep slowdown from September's 0.7% growth figure.

The single currency declined 0.15% against the Pound to 0.8561 after the data was published, Pound Sterling Live reports.

"German factory orders released this morning showed a larger than expected fall of 7.3% year-on-year, adding to the continued negative narrative surrounding the EUR. GBPEUR may well have another attempt at the 2023 highs," said Head of FX Analysis at Equals Money, Thanim Islam.

Furthermore, the Euro/Dollar rate was down 0.10% at 1.0788.

"EUR/USD stays offered below 1.08 after worse than forecast German new orders," said Kenneth Broux, a strategist at Société Générale.

The Euro was trading down against all its G10 peers, with the exception of Sweden's Krona.

The data also showed global demand remained weak, with a 7.6% drop in foreign orders, a 7.6% decline in new orders from the euro area, and a 7.4% fall in orders from the rest of the world. In contrast, domestic orders increased by 2.4%.

The single currency has faced pressure over the last week as bets increased, and the European Central Bank (ECB) would start cutting rates.

These bets were bolstered on Tuesday as Isabel Schnabel, from the ECB's rate-setting committee, didn't rule out a rate cut in Q1 2024.

"Am I reading it correctly that you're not ruling out a rate cut before mid-year then?" Schnabel was asked, and her response was not to rule out rate cuts as the ECB is still "data dependent."