Euro Jumps After Germany Factory Orders Surge
July 5, 2018 12:41 pmVideo
Latest News
- Analysis of the GBP/USD pair on April 18, 2024 April 18, 2024
- Analysis for EUR/USD pair on April 18th. Dull ending to a dull week April 18, 2024
- USD/JPY: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- EUR/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: trading plan for the US session on April 18th (analysis of morning deals) April 18, 2024
- Trading Signals for EUR/USD for April 18-20, 2024: buy above 1.0641 (21 SMA – 2/8 Murray) April 18, 2024
- Bitcoin slides ahead of halving event – Crypto News April 18, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 18-20, 2024: buy above $62,500 or $63,037 (4/8 Murray – rebound) April 18, 2024
- GBP/USD. April 18th. Andrew Bailey did not clarify the situation on QE April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 18-20, 2024: buy above $2,375 (6/8 Murray – 21 SMA) April 18, 2024
- Technical Analysis – Netflix stock moves within narrow range ahead of earnings April 18, 2024
- Technical Analysis – GBPUSD tries to recoup some losses April 18, 2024
- USD/JPY in crisis April 18, 2024
- EUR/USD: trading plan for US session on April 18. EUR gets stuck at 1.0686 April 18, 2024
- Fed to keep policy tight for longer than markets view April 18, 2024
- Technical Analysis – BTCUSD drops to 6-week low as halving looms April 18, 2024
- Midweek Technical Look – EURUSD, US 500, WTI April 18, 2024
- Technical Analysis – AUDJPY pulls back but stays in uptrend April 18, 2024
- Forex forecast 04/18/2024: EUR/USD, USD/JPY, Oil and Bitcoin from Sebastian Seliga April 18, 2024
Germany is the largest economy in the European Union with a GDP of $3.45 trillion dollars. This makes it the fourth largest economy in the world after the United States, China, and Japan.
Germany is known for its industrial production. It is the home to some of the largest engineering firms in the world. Most prominently, it is known for its automobiles. Vehicle companies like Mercedes, Porsche, Volkswagen, and BMW are known around the world for their quality, durability, and class. Germany is also known for the manufacturing of various products in power, energy, and healthcare.
As a result of all this, Germany is one of the countries with a big trade surplus. In 2017, the country’s trade surplus fell for the first time since 2009. It had a trade surplus of more than $300 billion. It has a $64 billion trade surplus with the United States. A trade surplus is got when a country exports more goods than it imports. Part of the reason for the big trade surplus is because of Germany’s reluctance to consumption.
Germany is also the biggest country in the European Union. It is followed by France which has a GDP of $2.46 trillion. Therefore, when Germany develops some problems, they tend to affect the entire region.
Today, the country released the factory orders for the month of May. The data showed that new orders climbed 2.6 per cent in May from April on a fully adjusted basis, while the decline of 1.6 per cent in April from March was less bad than the 2.5 per cent fall originally forecast.
This data is an indication that the economy – which depends mostly on industrial production – is doing better than many people expect.
However, it could also be an indication that people and companies are increasing their spending before the European Union and the US get into a full-blown trade war.
Angela Merkel addressed this issue yesterday when she addressed parliament. In her speech, she said that although the country had initiated tariffs on US-destined steel and aluminum, she was hopeful that the trade conflict would not result into a real trade war. She also said that the country was prepared to put additional tariffs on US goods if Donald Trump goes ahead with his threat to place tariffs on German cars. Estimates show that a company like BMW would lose more than $400 million per year.
In response to the improved data from Germany, the Euro jumped against the dollar and reached an intraday high of 1.1710 as shown below. The upward trend could continue especially if the US job numbers disappoint and if the Fed minutes sound dovish. Going by the statement released after the Fed meeting, the latter is not likely.
Meanwhile, in Switzerland, the franc gained immediately after the CPI data were released. The data showed that the June CPI was at 1.1% which was in line with expectations and higher than last month’s CPI. On a MoM basis, the CPI numbers declined to 0.0%, which was worse than the expected 0.1%.
The post Euro Jumps After Germany Factory Orders Surge appeared first on Forex.Info.
Related Posts: