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German Factory Orders Deliver Strong EUR Support

By:
Bob Mason
Published: Feb 4, 2022, 12:00 UTC

Disappointing Eurozone retail sales figures failed to spook the EUR, with German factory orders up 2.8% in December.

euro background

In this article:

It was a relatively busy morning on the Eurozone economic calendar this morning. Key stats included German factory orders and Eurozone retail sales figures for December. It was a mixed set of numbers, with German factory orders delivering further EUR support.

German Factory Orders

In December, German factory orders increased by 2.8% versus a forecasted 0.5% rise. Factory orders had jumped by 3.6% in November.

According to Destatis,

  • Domestic orders surged by 11.7%, month-on-month, while foreign orders fell by 3.0%.
  • New orders from the euro area declined by 4.2%, while new orders from other countries fell by 2.3%.
  • Producers of intermediate goods reported a 4.1% increase in new orders, with capital goods producers seeing a 1.8% rise.
  • Consumer goods orders led the way, however, jumping by 5.3%.
  • Compared with December 2020, orders were 5.5% higher.

Eurozone Retail Sales

In December, retail sales slid by 3.0% in the Eurozone reversing a 1.0% increase from November. Economists had forecast a more modest 0.5% decline.

According to Eurostat,

  • Non-food product sales slumped by 5.2%, while food, drinks, & tobacco sales slipped by 0.3%.
  • Automotive fuel sales rose by a modest 0.1%.
  • Member states with the largest falls in retail trade volume were the Netherlands (-9.2%), Spain (-5.7%), and Germany (-5.5%).
  • By contrast, Latvia (+7.2%) and Slovenia (+2.1%) recorded the largest increases in retail sales in December.

Market Impact

Ahead of today’s stats, the EUR had fallen to a pre-stat and current day low $1.14321 rising to a pre-stat high $1.14719.

In response to today’s prelim inflation figures, the EUR rose to a post-stat and current day high $1.14770.

At the time of writing, the EUR was up by 0.32% to $1.14761.

040222 EURUSD Hourly Chart

Next Up

U.S nonfarm payrolls for January.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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