- German Factory Orders drop 1.3% MoM in November.
- German Factory Orders fall 6.5% YoY in November.
- EUR/USD keeps its range around 1.1150, eyes US ADP.
The German Factory Orders data unexpectedly dropped in November, suggesting that the manufacturing sector in Europe’s largest economy has not yet bottomed out and the recession still looms.
Contracts for goods ‘Made in Germany’ arrived at -1.3% on the month vs. +0.3% expected and +0.2% last, the latest data published by the Federal Statistics Office showed on Wednesday.
On an annualized basis, Germany’s Industrial Orders fell 6.5% last month vs. -5.5% expectations and -5.6% previous.
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.
FX Implications
The shared currency showed little reaction to the below-forecast German Factory Orders data, leaving the EUR/USD pair mostly unchanged around the 1.1150 region amid a calm market environment.
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