Germany Factory Orders Miss Estimates

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Germany Factory Orders Miss Estimates

Germany's Factory Orders Show 0.2% Rebound In February

rebound was seen in Germany's factory orders in February, based on data from the Federal Statistics Office. According to economists, this is a sign that Germany's manufacturing sector is now staging a recovery.

During the month, a +0.2% change was seen in the contacts of German goods. What's truly impressive is that the data has moved from a -11.4 % decline during January. However, the data missed the forecast of 0.8%, which suggests that the recovery was not as impressive as the market was initially thinking!

Factory Orders Not Positive For Eur

Overall, the annual rate of Industrial orders in Germany showed a 10.6% change. If we look at the same period last year, the decline was around 6.2%.

According to experts, the German data showed a positive reading, but it was still weak when compared with the forecasts. As a result, the EUR/USD will likely remain under pressure and touch low near the 1.0825 handle.

Additionally, the NFP report was also not good for the EUR at all. That's why it is safe to say that the EUR/USD is receiving bad news in a row.

The EUR is weak against the USD, but the EUR's decline against the JPY is much more than that! In a sense, we can say that the EUR is under pressure against most other currencies.

If we keep the fact of missing forecasts aside, the bigger picture is that Germany's factory order has shown a positive momentum. If this keeps up, it will be a sign that 'made in Germany' products have started to find demand locally and internationally as well.

Elsewhere, the EUR appears to have gained ground against the GBP, CAD, AUD, and even the NZD. Overall, the EUR had a mixed week against the major currencies as it lost against the USD and the JPY. In the coming week, the bias in the EUR/USD will likely readjust based on the upcoming data.

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