- German Factory Orders rebounded 3.7% MoM in November.
- On a yearly basis, Germany’s Factory Orders jumped by 1.3% in November.
- EUR/USD tests low just below 1.1300 despite strong German Factory data.
The German Factory Orders rebounded more than expected in November, suggesting that the recovery in the manufacturing sector of Europe’s economic powerhouse seems to have regained traction.
Contracts for goods ‘Made in Germany’ jumped 3.7% on the month vs. 2.1% expected and -5.8% last, the latest data published by the Federal Statistics Office showed on Thursday.
On an annualized basis, Germany’s Industrial Orders rose by 1.3% in the reported month vs. 0.1% previous.
FX implications
The shared currency remains weighed by the resurgent US dollar demand, with EUR/USD testing lows near 1.1290, down 0.18% on the day. The main currency pair ignored the encouraging German factory data.
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.