- German Factory Orders rose 2.8% MoM in July.
- On a yearly basis, Germany’s Factory Orders dropped 7.3% in July.
- EUR/USD shrugs off the mixed German Factory data.
The German Factory Orders increased less-than-expected in July, suggesting that the manufacturing sector recovery in Europe’s largest economy is losing momentum.
Contracts for goods ‘Made in Germany’ arrived at +2.8% on the month vs. +5.0% expected and +28.8% last, the latest data published by the Federal Statistics Office showed on Friday.
On an annualized basis, Germany’s Industrial Orders dropped by 7.3% in the reported month vs. -20.4% previous and -10.6% 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.
FX implications
The shared currency showed little reaction to the mixed German Factory Orders data, with EUR/USD keeping its overnight range near mid-1.1800s. All eyes on the US NFP release.
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