• German Factory Orders slumped by 10.7% MoM in March vs. -2.2% expected.
• German Factory output tumbled by 11.0% YoY in March vs. -8.3% expected.
• EUR/USD remains unfazed near 1.1040 following the downbeat German data.

The German Factory Orders data showed a much bigger-than-expected drop in March, suggesting that the manufacturing sector recovery is faltering.

Contracts for goods ‘Made in Germany’ came in at -10.7% on the month vs. -2.2% expected and 4.5% prior, the latest data published by the Federal Statistics Office showed on Friday.

On an annualized basis, Germany’s Industrial Orders arrived at -11.0% in the reported month vs. -8.3% expected and a -6.0% slump seen in Februrary.

FX implications

The shared currency stands resilient to the downbeat German factory data. At the time of writing, EUR/USD is trading at 1.1036, preserving 0.23% gains on the day.