When are the German Factory Orders and how could they affect EUR/USD?


German Factory Orders overview

The German data scheduled for release at 06:00 GMT is expected to show the pace of decline in the Factory Orders moderated somewhat in August.

Factory Orders are forecasted to drop 1.5% month-on-month in August, following July's 2.7% decline. The annualized figure is expected to print at -4.6%.

Manufacturing PMI remained below 50.00 in August

The headline IHS Markit/BME Germany Manufacturing PMI – a single-figure snapshot of the performance of the manufacturing economy – rose slightly to 43.5 in August, but remained well below 50, indicating contraction for an eight-month in a row.

More importantly, the survey showed that sentiment about future output fell to a record low, pointing to pessimism among manufacturers.

Factory orders, therefore, may have taken a hit in August as forecasted by economists.

Impact on the EUR/USD

The long upper wicks attached to the previous two daily candles indicate the pair's corrective bounce from Oct. 1's low of 1.0879 has run out of steam near the 21-day moving average (MA).

As of writing, the pair is trading around 1.0980 and the 21-day MA is located at 1.0996. The pair will likely find acceptance above the key MA hurdle, signaling a continuation of the recovery rally if the German Factory Orders blow past expectations.

However, if the Factory Orders drop more than expected, EUR/USD may face selling pressure and drop below 1.0950.

It is worth noting that the probability of a 25 basis points Federal Reserve rate cut on Oct. 30 has moved back higher to 83% at press time. So, the downside in EUR/USD could be limited.

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.

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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.

GBP/USD News

EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.

EUR/USD News

Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold sidelined near $1465 level, FOMC awaited

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses, around the $1463-66 region through the early European session on Wednesday.

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures