News & analysis

The euro’s rally from earlier this morning ran out of steam after the morning’s data releases included a sharp expansion in German factory orders and a lower-than-expected improvement in investor confidence in the eurozone. 

  • Factory orders in Germany surged by 10.4% month-on-month in May from a revised -26.2% in April but remained well below the consensus of a 15.4% increase. This indicates that demand in German manufacturing recovered some ground as containment measures were lifted and the economy was gradually reopened, but the increase was lower than the consensus expected. New orders are still under pressure – demand and output may be rebounding, but the increase is small compared to the major drag on demand in the previous two months to begin with.
  • Investor confidence rose from -18.2 in July from -24.8 in June, where a reading of -10.9 was expected. The reading likely reflects the expectations of investors that a gradual economic recovery is in sight, but there has not been much improvement in the longer-term outlook since the previous data release.

 

EURUSD slows down after improved but below consensus data from the eurozone

 

Author: 

Ima Sammani, Junior FX Market Analyst

 

 

DISCLAIMER: This information has been prepared by Monex Europe Limited, an execution-only service provider. The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. No opinion given in the material constitutes a recommendation by Monex Europe Limited or the author that any particular transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, it is not subject to any prohibition on dealing ahead of the dissemination of investment research and as such is considered to be a marketing communication.