- German Factory Orders plunged by 15.6% MoM in March.
- On a yearly basis, Germany’s Factory Orders arrived at -16.0% in March.
- EUR/USD shrugs off devastating German Factory data.
The German Factory Orders slumped in March, suggesting that the manufacturing sector in Europe’s largest economy is heading deeper into contraction.
Contracts for goods ‘Made in Germany’ arrived at -15.6% on the month vs. -10.0% expected and -1.2% last, the latest data published by the Federal Statistics Office showed on Wednesday.
On an annualized basis, Germany’s Industrial Orders plummeted 16.0% in the third month of 2020 vs. +1.5% 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.
The shared currency showed little reaction to the awful German Factory Orders data, with the EUR/USD pair holding the lower ground around 1.0835 region amid ECB challenges and broad dollar strength.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.