THE TAKEAWAY: German factory orders fall 1.8% in November -> German exports also down -> Euro trading steady
German factory orders returned to a decline in November, according to the Economy Ministry. Orders for manufacturing dropped 1.8%, worse than the expected 1.4% drop in orders and a reversal of last month’s revised 3.8% rise in orders. Factory orders are 1.0% lower than November 2011.
Earlier today, German exports were reported to have dropped sharply over the same month, which may have been responsible for the decline in factory orders. However, last week, retail sales were reported 1.2% higher in November, showing signs of increased consumer spending.
The German economy has been suffering from the Euro debt crisis, and signs of a recovery in Germany or in the Euro-zone would be Euro positive.
The Euro saw some initial losses following the release of the disappointing factory orders, but the single currency quickly bounced back towards 1.3025 against the US Dollar in Forex markets. Resistance might be provided by 1.3158, which has provided resistance over the past few months.
EURUSD Daily: January 8, 2013