• German Factory Orders rebounded 1.3% MoM in September, a miss.
  • On a yearly basis, Germany’s Factory Orders rose by 9.7% in September.
  • EUR/USD tests lows below 1.1600 on dismal German Factory data.

The German Factory Orders dropped more than expected in September, suggesting that the recovery in the manufacturing sector of Europe’s economic powerhouse has lost momentum.

Contracts for goods ‘Made in Germany’ jumped 1.3% on the month vs. 2.0% expected and -7.7% last, the latest data published by the Federal Statistics Office showed on Wednesday.

On an annualized basis, Germany’s Industrial Orders rose by 9.7% in the reported month vs. 11.7% previous.

FX implications

The shared currency remains weighed by the downbeat German Factory Orders data, with EUR/USD testing lows near 1.1575, down 0.26% on the day.

About German Factory Orders

The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.

This article was originally published by Fxstreet.com.Read the original article here.