Factory orders in Germany slip as export demand falters
The report here is an ugly one and it will only add to growing concerns that the German and Eurozone economy isn't recovering as much as policy makers would like to believe in Q2.
Looking at the details of the report, overseas demand fell 4.7% on the month as non-Eurozone orders declined by 5.9%. Add in potential escalation in trade tensions with the US, the outlook isn't looking too bright for the German economy considering how much they rely on exports/trade.
And if the anchor of the Eurozone economy starts to shake, it isn't going to be something the ECB would welcome as they look towards normalising monetary policy next year.
While the data release itself isn't changing much on the day, the ripple effect is more resounding surely. EUR/USD continues to trade near the lows in the range of 1.1550-60 while EUR/GBP is range-bound just under 0.8900. EUR/JPY is a little lower on the day as well currently at 128.58 with yen pairs still looking heavy since Friday's trading.
