Decline in German Factory Orders Disappoints Expectations
THE TAKEAWAY: German factory orders drops 1.3% in August -> Germany continues to struggle with the debt crisis -> Euro trading is steady
German manufacturing orders dropped by 1.3% in August (seasonally adjusted), disappointing expectations for a 0.5% drop, and a reverse from July’s revised 0.3% rise in factory orders. Manufacturing orders were 4.8% less than August 2011, according to the Economy Ministry.
Orders from within Germany were 3% lower in August, while orders from neighboring Euro-zone countries were 2.4% higher. The orders for consumer goods dropped 0.7% in August.
German economic growth slowed to 0.3% in the second quarter, as effects of the debt crisis have begun to appear in the Euro-zone’s biggest economy. Euro investors are looking for signs of an economic rebound in Germany and the Euro-zone, and these factory orders could be a disappointment for those with optimistic expectations.
However, the factory orders release did not have an effect on Euro trading. EURUSD has been struggling to stay above the key 1.3000 level since yesterday’s rally past 1.3025. The pair might find resistance at 1.3055, by the 38.2% retracement of the rise from the EURUSD all time low to the all time high.
EURUSD 15-minute: October 5, 2012
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