German Factory Orders beat estimates with 3% MoM in March, EUR/USD keeps 1.20
|- German Factory Orders rose by 3% MoM in March, a big beat.
- On a yearly basis, Germany’s Factory Orders jumped by 27.8% in March.
- EUR/USD cheers upbeat Germany’s factory data, extends above 1.20.
The German Factory Orders increased as much more than expected in March, suggesting that the manufacturing sector in Europe’s economic powerhouse sees an impressive post-pandemic recovery.
Contracts for goods ‘Made in Germany’ arrived at 3% on the month vs. 1.7% expected and 1.4% last, the latest data published by the Federal Statistics Office showed on Thursday.
On an annualized basis, Germany’s Industrial Orders leaped by 27.8% in the reported month vs. 5.8% previous and an expected rise of 4.1%.
FX implications
The shared currency digests the upbeat German Factory Orders data, as EUR/USD flirts with daily highs of 1.2011, posting small gains on the day.
About German Factory Orders
The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.
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