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Euro recovers after upbeat German factory data

Euro recovers after upbeat German factory data

Today's German data helped the euro to record widen it gains against the dollar for the second straight session, in light of signs of economic recovery in Germany, along with hopes for more stimulus in the European region in the near term.

The euro rose against the US dollar to record the highest level today at 1.1351 and had opened trading today at the level of 1.1245 to currently trade at 1.1311 levels.

The Factory orders in Germany, which is one of the indicators that measures the future performance of the industrial sector, showed an increase in May by 10.4% after a record decrease in April by 26.2%, while expectations were for an increase of 15.1%.

On the other hand, Sentix statistics showed investor confidence in Germany fell by 18.2 to witness improvement after the previous reading of 24.8. Expectations were for a decrease to 10.8.

Although the German data is less than expected, but its impact was largely positive on the performance of the euro, and that the data is largely positive compared to the previous reading, which was showing a sharp deterioration in all economic activities in Germany.

The rise today in the levels of the factory orders index is the largest monthly increase ever, after March and April, which witnessed a violent deterioration due to closings in Germany and most of the world due to the outbreak of the Corona pandemic that negatively affected local and global demand.

It is worth noting that industrial orders data in Germany indicate that the lifting of the closing procedures has caused a boom in industrial activity in the form of the letter V, yet analysts argue that returning to pre-crisis levels will not be easy.

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