News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/pY4LFKsD7P
  • Rouhani’s Chief of staff says lifting of economic sanctions on Iran has been agreed in Vienna #OOTT
  • IHS Markit "inflation worries have continued to intensify. Record levels of the survey’s price gauges and the further development of capacity constraints hint strongly that CPI has much further to rise after already breaching the BoE's 2% target in May" https://t.co/qRGdhxWfqp
  • 🇬🇧 Markit/CIPS Composite PMI Flash (JUN) Actual: 61.7 Expected: 62.8 Previous: 62.9 https://www.dailyfx.com/economic-calendar#2021-06-23
  • 🇬🇧 Markit/CIPS UK Services PMI Flash (JUN) Actual: 61.7 Expected: 63 Previous: 62.9 https://www.dailyfx.com/economic-calendar#2021-06-23
  • 🇬🇧 Markit/CIPS Manufacturing PMI Flash (JUN) Actual: 64.2 Expected: 64 Previous: 65.6 https://www.dailyfx.com/economic-calendar#2021-06-23
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/HpGjvYi8eu
  • Heads Up:🇬🇧 Markit/CIPS Composite PMI Flash (JUN) due at 08:30 GMT (15min) Expected: 62.8 Previous: 62.9 https://www.dailyfx.com/economic-calendar#2021-06-23
  • Heads Up:🇬🇧 Markit/CIPS Manufacturing PMI Flash (JUN) due at 08:30 GMT (15min) Expected: 64 Previous: 65.6 https://www.dailyfx.com/economic-calendar#2021-06-23
  • Heads Up:🇬🇧 Markit/CIPS UK Services PMI Flash (JUN) due at 08:30 GMT (15min) Expected: 63 Previous: 62.9 https://www.dailyfx.com/economic-calendar#2021-06-23
German Manufacturing Slump Long-Term Negative for Euro

German Manufacturing Slump Long-Term Negative for Euro

Martin Essex, MSTA, Analyst

German manufacturing and the Euro:

  • German industrial orders fell by 4.2% month/month in February after a revised 2.1% drop in January.
  • That suggests industrial output data due Friday may also be weak, and the poor state of the German economy will likely put long-term downward pressure on the Euro.

German factory orders tumble

German industrial orders dropped by 4.2% month/month in February, better than the 4.5% fall predicted by economists but worse than the revised 2.1% decrease in January. Combined with Monday’s news that the IHS Markit/BME German manufacturing PMI dropped sharply in March to 44.1 from 47.6 in February, the data suggest that industrial output figures for February, due Friday, will also show economic weakness.

Monday’s purchasing managers’ index for the German manufacturing sector fell to its lowest since July 2012, with new orders posting their steepest drop since April 2009 and employment easing for the first time in three years.

Wednesday’s services PMI was much more positive but the composite output index for the German economy as a whole was still the lowest for nearly six years, pointing to only modest underlying economic growth.

This is all likely to be ignored by Euro traders near-term but will likely have a negative effect on the currency in the months ahead as the European Central Bank continues to postpone any tightening of Eurozone monetary policy.

EURUSD Price Chart, Daily Timeframe (Year-to-date)

Latest EURUSD price chart.

Chart by IG (You can click on it for a larger image)

Meanwhile, yields on German government debt remain negative all the way out to nine years, with the yield on the benchmark 10-year Bund barely positive at 0.003% – a factor that could deter foreign investors from buying the Euro.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES