German Factory Orders miss estimates with -0.2% MoM in April, EUR/USD eases
- German Factory Orders dropped by 0.2% MoM in April, a miss.
- On a yearly basis, Germany’s Factory Orders jumped by 78.9% in April.
- EUR/USD tests lows near 1.2150 on mixed German Factory data.
The German Factory Orders unexpectedly fell in April, suggesting that the manufacturing sector in Europe’s economic powerhouse is still not out of the woods yet.
Contracts for goods ‘Made in Germany’ arrived at -0.2% on the month vs. 1.0% expected and 3.9% last, the latest data published by the Federal Statistics Office showed on Monday.
On an annualized basis, Germany’s Industrial Orders galloped by 78.9% in the reported month vs. 29.2% previous and an expected rise of 17.3%.
FX implications
The shared currency remains pressured on dismal German Factory Orders data, as EUR/USD flirts with daily lows of 1.2155, posting small losses 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.
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.
