• German Factory Orders rebounded 6.4% MoM in May vs. 1.5% expected.
• German Factory output dropped 4.3% YoY in May vs. -9.9% previous.
• EUR/USD picks up bids near 1.0860 on strong German data.

The German Factory Orders data showed an improvement in May, suggesting that the manufacturing sector recovery is finding its momentum.

Contracts for goods ‘Made in Germany’ came in at 6.4% on the month vs. 1.5% expected and -0.4% previous, the latest data published by the Federal Statistics Office showed on Thursday.

On a yearly basis, Germany’s Industrial Orders arrived at -4.3% in the reported month, compared with -9.9% booked in April.

FX implications

The shared currency draws some support from the strong German factory data. At the time of writing, EUR/USD is trading at 1.0861, holding 0.10% gains on the day.