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Germany: Orders surge while construction set to rebound – Deutsche Bank

Deutsche Bank analysts note a strong upside surprise in German manufacturing orders, up 7.8% MoM on defence and transport-related demand, with underlying orders ex‑large items also rising. Construction PMIs weakened on bad weather, but healthy order books suggest a spring rebound.

🔗 Source

💡 DMK Insight

German manufacturing orders just jumped 7.8% MoM, and here’s why that matters: This surge, driven by defense and transport demand, signals a potential shift in economic momentum. Traders should keep an eye on how this affects the Euro, especially against the USD, as a stronger manufacturing sector could lead to a more hawkish stance from the ECB. The construction PMIs may be weak now, but with healthy order books, a rebound in spring could provide a boost to related sectors. Look for key resistance levels in the Euro around recent highs, as any bullish sentiment could push it higher. But don’t overlook the potential risks. Bad weather impacting construction could delay projects and dampen overall growth. If the rebound doesn’t materialize as expected, we could see a pullback. Watch for upcoming economic indicators and PMI releases that could confirm or contradict this positive manufacturing trend.

📮 Takeaway

Monitor the Euro’s reaction to this manufacturing data; key resistance levels to watch are recent highs, especially if the ECB shifts its tone.

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