According to the official data released by the Federal Statistics Office of Germany, the Factory Orders data showed a sharp decline in July, suggesting that the German manufacturing sector is in the doldrums once again.

On a monthly basis, contracts for goods ‘Made in Germany’ slumped 11.7%, compared with -4.0% expected and 7.6% previous figure.

Germany’s Industrial Orders tumbled at an annual rate of 10.5% in the reported month, as against the 3.3% increase in June.

FX implications

The weak German data fails to deter Euro bulls, as the EUR/USD pair holds the recovery mode intact near 1.0730, at the time of writing, up 0.09% so far.