- German Factory Orders plunged by 25.8% MoM in April.
- On a yearly basis, Germany’s Factory Orders plummet 36.6% in April.
- EUR/USD shrugs off devastating German Factory data.
The German Factory Orders collapsed in April, suggesting that the manufacturing contraction in Europe’s largest economy is deepening due to coronavirus-led tumbling demand.
Contracts for goods ‘Made in Germany’ arrived at -25.8% on the month vs. -19.7% expected and -15.6% last, the latest data published by the Federal Statistics Office showed on Friday.
On an annualized basis, Germany’s Industrial Orders plummeted 36.6% in the fourth month of 2020 vs. -16.0% previous and -7.4% 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.
The shared currency showed little reaction to the awful German Factory Orders data, with the EUR/USD pair challenging new three-month tops at 1.1374.