German Factory Orders rebound 10.4% MoM in May vs. +15% exp, EUR/USD keeps highs

• German Factory Orders rebounded 10.4% MoM in May.
• On a yearly basis, Germany’s Factory Orders slumped 29.3% in May.
• EUR/USD shrugs off downbeat German Factory data.

The German Factory Orders jumped sharply in May, suggesting that the manufacturing contraction in Europe’s largest economy is slowing down.

Contracts for goods ‘Made in Germany’ arrived at +10.4% on the month vs. +15.0% expected and -25.8% last, the latest data published by the Federal Statistics Office showed on Monday.

On an annualized basis, Germany’s Industrial Orders plunged by 29.3% in the reported month vs. -36.6% previous and -28.0% expectations.

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.