German Factory Orders Provide Little EUR Comfort

Following the private sector PMIs through the 1^st half of the week, the German economy was back in the spotlight this morning.

Factory orders were in focus ahead of the European open.

German Factory Orders

In June, factory orders jumped by 4.1%, month-on-month, coming well ahead of a forecasted 1.8% rise. In May, orders had tumbled by 3.7%.

According to Destatis,

• Domestic orders jumped by 9.6%, while foreign orders rose by just 0.4%.
• New orders in the euro area increased 1.3%, while new orders from outside the euro area slipped by 0.2%, compared with May 2021.
• When compared with Feb-2020, new orders were 11.2% higher and up 26.2% on the same month a year earlier.

Market Impact

Ahead of today’s numbers, the EUR had fallen to a pre-stat and current day low $1.18315 before finding support.

In response to today’s stats, the EUR rose to a post-stat high $1.18371 before falling back to a post-stat and current day low $1.18315.

At the time of writing, the EUR was down by 0.03% to $1.18331.

Next Up

The ECB Economic Bulletin is due out later this morning ahead of U.S trade and weekly jobless claims data. Expect plenty of interest in the Economic Bulletin and market sensitivity to the jobless claims data.