German Factory Orders Deliver Strong EUR Support
It was a relatively busy morning on the Eurozone economic calendar this morning. Key stats included German factory orders and Eurozone retail sales figures for December. It was a mixed set of numbers, with German factory orders delivering further EUR support.
German Factory Orders
In December, German factory orders increased by 2.8% versus a forecasted 0.5% rise. Factory orders had jumped by 3.6% in November.
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According to Destatis,
- Domestic orders surged by 11.7%, month-on-month, while foreign orders fell by 3.0%.
- New orders from the euro area declined by 4.2%, while new orders from other countries fell by 2.3%.
- Producers of intermediate goods reported a 4.1% increase in new orders, with capital goods producers seeing a 1.8% rise.
- Consumer goods orders led the way, however, jumping by 5.3%.
- Compared with December 2020, orders were 5.5% higher.
Eurozone Retail Sales
In December, retail sales slid by 3.0% in the Eurozone reversing a 1.0% increase from November. Economists had forecast a more modest 0.5% decline.
According to Eurostat,
- Non-food product sales slumped by 5.2%, while food, drinks, & tobacco sales slipped by 0.3%.
- Automotive fuel sales rose by a modest 0.1%.
- Member states with the largest falls in retail trade volume were the Netherlands (-9.2%), Spain (-5.7%), and Germany (-5.5%).
- By contrast, Latvia (+7.2%) and Slovenia (+2.1%) recorded the largest increases in retail sales in December.
Market Impact
Ahead of today’s stats, the EUR had fallen to a pre-stat and current day low $1.14321 rising to a pre-stat high $1.14719.
In response to today’s prelim inflation figures, the EUR rose to a post-stat and current day high $1.14770.
At the time of writing, the EUR was up by 0.32% to $1.14761.
Next Up
U.S nonfarm payrolls for January.