German Factory Orders rebound 4.1% MoM in June; EUR/USD unfazed
- German Factory Orders jumped by 4.1% MoM in June, a big beat.
- On a yearly basis, Germany’s Factory Orders rose only by 26.2% in June.
- EUR/USD keeps its range around 1.1835 on mixed German Factory data.
The German Factory Orders jumped more than expected in June, suggesting that the manufacturing sector in Europe’s economic powerhouse has witnessed a major turnaround.
Contracts for goods ‘Made in Germany’ arrived at 4.1% on the month vs. 1.9% expected and -3.2% last, the latest data published by the Federal Statistics Office showed on Thursday.
On an annualized basis, Germany’s Industrial Orders rose by 26.2% in the reported month vs. 54.9% previous and expected growth of 67.5%. The data missed expectations by a big margin.
FX implications
The shared currency remains unfazed by the mixed German Factory Orders data, as EUR/USD hovers around 1.1835, little changed 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.
