THE TAKEAWAY: German Factory Orders increased by 0.8% in December -> Euro-zone manufacturing demand rose 7.0% -> Euro trading steady
German factory orders rose 0.8% (seasonally adjusted) in December, beating expectations for a 0.7% rise and better than November’s 1.8% decline in orders. Factory orders declined 1.8% from December 2011, according to the German Economy Ministry.
Domestic demand for manufacturing fell by 1.2% in December, while demand from the rest of the Euro-zone rose 7.0%. Export orders from factories rose 2.4%.
The German Economy Ministry said the orders are a good sign for 2013 production, and the indicators suggest the end of a weak phase. The 7% rise in factory order from the Euro-zone is encouraging for those expecting a Euro-zone recovery in 2013. German economic expansion slowed to 0.2% in Q3, and the rise in factory orders lends to the view that economic growth picked up in Q4. Improved German growth is Euro positive.
However, the rise in factory orders did not significantly affect Euro trading. A 14-month high recently set at 1.3710 may now provide resistance for EUR/USD, and a broken resistance line at 1.3500 may provide support.
EURUSD Daily: February 6, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .