German factory orders rose by 2.2%. They were expected to drop by 0.4% in March after rising 2.2% last month (marginally revised lower from 2.3% originally reported). This is significantly better than expected and counters fears that Germany could also see a recession.
EUR/USD traded around 1.3070 before the publication, still under pressure from Draghi’s reiteration of the possibility of a negative deposit rate. The pair now trades around 1.3093. The round 1.31 level is minor resistance. Update: EUR/USD now breaks above 1.31.
Figures from the euro-zone’s locomotive have a significant effect on the common currency. The drop in German inflation was one of the drivers for the recent rate cut by the ECB.
1.3160 serves as the next line of resistance, followed by 1.32. Support is at 1.3050, followed by 1.30. For more, see the EUR/USD outlook.
Live chart of EUR/USD: [do action=”tradingviews” pair=”EURUSD” interval=”60″/]
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