German Factory Orders drop 1.4% MoM in Feb vs. -1.9% exp, EUR/USD off highs

• German Factory Orders dropped 2.1% MoM in February.
• On a yearly basis. Germany’s Factory Orders jumped 1.5% YoY in February.
• EUR/USD eases-off daily highs, eyes coronavirus updates.

The German Factory Orders data unexpectedly dropped in February, suggesting that the manufacturing sector recession in Europe’s largest economy is deepening.

Contracts for goods ‘Made in Germany’ arrived at % on the month vs. -1.9% expected and +5.5% last, the latest data published by the Federal Statistics Office showed on Monday.

On an annualized basis, Germany’s Industrial Orders jumped 1.5% in the second month of 2020 vs. -1.4% previous.

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.