German Factory Orders beat estimates with 1.4% in Jan, EUR/USD unfazed
- German Factory Orders rose sharply by 1.4% MoM in January.
- On a yearly basis, Germany’s Factory Orders arrived at 2.5% in January.
- EUR/USD remains unfazed by mixed German Factory data.
The German Factory Orders increased more-than-expected in January, suggesting that the manufacturing sector in Europe’s economic powerhouse kicked off 2021 on a positive footing.
Contracts for goods ‘Made in Germany’ arrived at +1.4% on the month vs. 0.7% expected and -2.2% last, the latest data published by the Federal Statistics Office showed on Friday.
On an annualized basis, Germany’s Industrial Orders rose by 2.5% in the reported month vs. 6.1% previous and 6.4% expectations.
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 mixed German Factory Orders data, as EUR/USD kept its range above 1.1950.
The major is now seen trading at 1.1953, shedding 0.10% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
