The euro had a poor day Tuesday, losing almost half a cent to the USD to finish around 1.1813 and EUR/CAD down a similar amount to exactly 1.5000. Overnight this Wednesday, EUR/USD is down 10 pips but EUR/CAD is 30 pips lower and threatening to break down to what would be its lowest level since November 14th. The Euro’s drop today comes despite figures showing German factory orders climbed in October for the third month in a row, confounding expectations of a decline. Factory orders increased 0.5% in October from the previous month, according to the Federal Statistics Office.
September’s gain was also revised higher to 1.2% m/m from a previous reading of 1.0%. Details of the report showed orders from companies within Germany increased 0.4%, while international orders were up 0.5%. The international component was led by firms outside of the eurozone, where orders increased 1.6%. Clearly, there’s still plenty of demand for the very high-quality consumer goods, autos and machinery for which Germany is so deservedly famous. Elsewhere in this morning’s batch of data releases, Eurozone Retail PMI improved to 52.4 points in November, its highest level since June. The problem for the EUR continues to be that whilst the economic news is almost without exception positive, it is well known and already ‘in the price’.
Traders are reluctant either to sell dips or to buy into the rallies so we’re left in a familiar USD1.1750-1.1930 range unless and until some genuine ‘news’ hits the screens.