Euro hits two-week low against dollar

Euro fell in American trade to the lowest since January 24 against the dollar, following earlier data from the euro zone and the US, the world's largest economy. 

As of 03:37 GMT, EUR/USD fell 0.38% to 1.2320 from the opening of 1.2367, with a two-week low at 1.2315, and a session-high at 1.2434. 

Earlier German data showed factory orders rose 3.8% in December, compared to a 0.1% dip in November, while retail PMI for the whole zone fell to 50.8 from 53.0 in December. 

European Central Bank Mari Draghi testified on the ECB's Annual Report for 2016 before the European Parliament, in Strasbourg, where he noted that the 2% inflation target hasn't been achieved yet, while economic recovery continues its march, as the monetary policy is closely dependent on economic data. 

Draghi pointed to increased ECB confidence towards inflation, expressing his confidence that consumer prices will continue to rise to the 2% target while calling for patience when it comes to monetary policy. 

Otherwise, earlier US data showed the trade deficit widened to $53.1 billion in December from $50.4 billion, while Saint Louis Federal Reserve President James Bullard said in earlier remarks that the links between labor and inflation have broken down in recent years. 

Bullard, who doesn't have voting privileges in this year's FOMC meetings, warned from interpreting good labor news as leading to direct gains in inflation, noting that the relationship could be close to zero, which comes after the last US payrolls report showed the fastest wage growth in eight years, stoking expectations of higher inflation and faster Fed rate hikes.