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Germany January industrial orders -11.1% vs -4.5% m/m expected

Prior +7.8%; revised to +6.4%When you exclude large orders, overall factory orders in Germany were just 0.4% lower than in December last year. Once again, it reflects the volatile swings in large orders mostly with December recording a major jump – its highest level since February 2022. The less volatile three-month comparison for new orders show a 1.5% increase overall instead, that is once you exclude large orders as well.Looking at the details, the orders for the manufacture of metal products showed a 39.4% drop in January compared to December (which increased by 29.7%). So, that makes up for a large chunk of what we’re seeing with the headline figure.Besides that, there were also declines in mechanical engineering (-13.5%) and in metal production and processing (-15.1%) – both of which are also attributable to the lower volume of large orders in January.All of that is offset by increases in order intake in the automotive industry (+10.4%) and in other vehicle manufacturing (aircraft, ships, trains, military vehicles; +9.2%).
This article was written by Justin Low at investinglive.com.

đź”— Source

đź’ˇ DMK Insight

Germany’s factory orders dropped 0.4% from December, but here’s why that matters: The revision from a prior +7.8% to +6.4% signals a potential slowdown in manufacturing momentum, which could impact the Eurozone’s economic outlook. Traders should note that this volatility, particularly in large orders, can lead to erratic price movements in the Euro and related assets. If the trend continues, we might see pressure on the Euro against the USD, especially if upcoming economic indicators reinforce this narrative. Watch for the EUR/USD pair around key support levels; a break below could trigger further selling. On the flip side, if the market overreacts, it might create a buying opportunity for those looking to capitalize on a rebound. Keep an eye on the upcoming PMI data for additional context on manufacturing health. The real story is how this data could influence ECB policy decisions, especially if inflation remains stubbornly high despite slowing growth.

đź“® Takeaway

Monitor the EUR/USD pair closely; a break below current support could signal further downside risk in response to Germany’s factory order revisions.

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