More Soft Euro-zone Data Keeps Pressure On Euro
Euro-zone industrial new orders for July came in much softer than expected and were accompanied by downward revisions to June’s numbers. On the monthly front new orders contracted by 2.1% much more than the forecast drop of 1.2% and June’s showing was revised down to -1.2% from -0.7% previously, the contraction marks the 3rd drop in the last 4 showings and its worst run since late 2008. On the annual front new orders expanded by 8.4% significantly softer than forecasts of 10.5%, again accompanied by a downward revision to June’s numbers to 10.6% from 11.1%. The soft showing is to be expected and further declines are likely in Q3 and Q4 as global growth goes through a protracted slowdown and economic activity slows to an ebb.
The euro continued its southern journey after more soft data – German, French and EZ PMIs released earlier performed badly – weighs on the beleaguered currency. In addition to domestic woes after the Fed stopped short yesterday of introducing QE3 the US Dollar has been rampant heaping more pressure on the euro. For a full technical outlook.
Written by Jonathan Granby, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.