A big bounce in the euro-zone’s locomotive: factory orders in Germany rose 4.6% in July, raising hopes for strong growth in the third quarter. This is triple the expectations. In addition, this comes on top of an upwards revision for June: a drop of 2.7% instead of 3.2% originally reported.
Germany was expected to report a bounce back in factory orders: 1.5% in July after a big drop of 3.2% in June. Year over year, orders fell 4.3% in June.
EUR/USD was trading steadily at around 1.3145 in anticipation of the big event: the ECB decision. It seems to shrug off this piece of data, as all eyes are on Draghi.
Well, the pair does move a few pips higher, but this is certainly below what would be expected from such a positive surprise in an important release.
Here is the ECB Preview: 4 options – lower forecasts but probably no action
Support appears at 1.31. Resistance is at 1.3150, followed by 1.3175.
