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German Factory Orders beat estimates with 2.3% in Nov, EUR/USD keeps 1.2300

  • German Factory Orders unexpectedly rose 2.3% MoM in November.
  • On a yearly basis, Germany’s Factory Orders jumped 6.3% in November.
  • EUR/USD remains unimpressed by upbeat German Factory data.

The German Factory Orders unexpectedly increased in November, suggesting that the manufacturing recovery in Europe’s economic powerhouse is picking up momentum.

Contracts for goods ‘Made in Germany’ arrived at +2.3% on the month vs. -1.2% expected and +3.3% last, the latest data published by the Federal Statistics Office showed on Thursday.

On an annualized basis, Germany’s Industrial Orders jumped by 6.3% in the reported month vs. +2.3% previous and -0.1% expectations.

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.

FX implications

The shared currency showed little reaction to better-than-forecasts German Factory Orders data, with EUR/USD holding its range above 1.2300

The upside in the major remains capped by the renewed strength in the US Treasury yields across the curve amid stimulus hopes. The benchmark 10-year Treasury yields rise 0.85% on a daily basis to trade just above 1.05%.

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