German Factory Orders fall sharply by 7.7% MoM in August; EUR/USD unfazed

• German Factory Orders fell sharply by 7.7% MoM in August, a big miss.
• On a yearly basis, Germany’s Factory Orders rose by 11.7% in August.
• EUR/USD keeps its range around 1.1590 on poor German Factory data.

The German Factory Orders dropped more than expected in August, suggesting that the recovery in the manufacturing sector of Europe’s economic powerhouse has lost momentum.

Contracts for goods ‘Made in Germany’ arrived at -7.7% on the month vs. -2.1% expected and 4.9% last, the latest data published by the Federal Statistics Office showed on Wednesday.

On an annualized basis, Germany’s Industrial Orders rose by 11.7% in the reported month vs. 26.1% previous and expected growth of 33.7%. The data outpaced expectations by a wide margin.

more to come ...

About German Factory Orders

The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.