German Factory Orders Fail to Impress the EUR ahead of December Inflation Numbers

It was quieter Eurozone economic calendar this morning. German factory orders were in focus early in the European session. Later in the day, German prelim inflation figures for December will also draw interest. German construction PMI numbers that were also out this morning had a muted impact on the EUR.

Factory Orders

In November, factory orders increased by 3.7% month-on-month, partially reversing a 5.8% slide from October. Economists had forecast a 2.1% increase.

According to Destatis,

• In November 2021, the largest increase in orders (+32.0%) was recorded in the manufacture of other transport equipment. These include aircraft, ships, trains, etc.
• New orders in the manufacture of motor vehicles and semi-trailers were up 7.0%. In October, orders had been down by 4.7%.
• Foreign demand drove new orders (+8.0%) in November. Significantly, new orders from the euro area increased by 13.1%.
• Producers of intermediate goods recorded a 1.2% increase in new orders.
• Capital goods (+5.3%) and consumer goods (+3.8%) fared better in the month.
• Year-on-year, factory orders were up 1.3%.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.13206 before easing back.

In response today’s stats, the EUR fell to a post-stat and current day low $1.12847 before rising to a post-stat high $1.13095.

At the time of writing, the EUR was down by 0.09% to $1.13038.

Next Up

German prelim inflation figures are due out ahead of U.S jobless claims and ISM Non-Manufacturing PMI numbers. Expect plenty of interest in the numbers.