German Factory Orders Fail to Deliver EUR Support as Riskier Assets Look for a Bounce back

It was a relatively quiet Eurozone economic calendar this morning. German factory orders were in focus going into the European open.

Factory Orders

In October, factory orders tumbled by 6.9%, month-on-month, versus a forecasted 0.5% decline. In September, orders had risen by 1.8%.

According to Destatis,

• Domestic orders increased by 3.4%, month-on-month, while foreign orders tumbled by 13.1%.
• New orders from the euro area decreased by 3.2%.
• A fall in new orders from other countries slumped by 18.1%, reversing a 15.7% increase from the previous month. The decline was as a result of the absence of major orders in the sector of manufacture of machinery and equipment.
• Producers of intermediate goods saw orders fall by 2.7%, with orders of capital goods sliding by 10.7%.
• Consumer goods orders rose by 4.3%, however.
• Not including major orders, new orders fell by 1.8%, when compared with Sep-2021.
• Compared with Oct-2020, new orders fell by 1.05. This was the first decrease since Sep-2020.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.13149 before falling to a pre-stat low $1.12809.

In response today’s stats, the EUR fell to a post-stat and current day low $1.12782 before rising to a post-stat high $1.12822.

At the time of writing, the EUR was down by 0.27% to $1.12825.

Next Up

German construction PMI numbers for November. We don’t expect the numbers to impact the EUR, however, with COVID-19 news updates still key at the start of the week.