After five months of consecutive falls and a substantial fall in April, the consensus expects a recovery in factory orders for May. German factory orders are expected to rise 0.8% in May month-over-month following a 1.8% decline in April. In yearly terms, economists are forecasting a decline in order growth to 2.0%, down from the previous month's 15.0% rise.

Economists at Barclays Capital expect German factory orders to come in slightly below consensus at 0.7% month-over-month. Citigroup economist Michael Saunders expects the lagged impact from the stronger euro and moderating global demand to slow orders. "If our forecast is correct, incoming orders in May on average will be 1.9% below the 1Q average, when orders were down by 1.3% Q/Q," commented Saunders.

In terms of speakers, ECB Governing Council member Klaus Liebscher will hold a briefing in Vienna, Austria.

All times in EDT.

2:45 FR Central Gov't. Balance (Euros) May Prior: -45.0B

4:00 EU ECB's Liebscher Holds Briefing in Vienna

6:00 DE Factory Orders (M/M) (SA) May Exp: +0.8% Prior: -1.8%

6:00 DE Factory Orders (Y/Y) (NSA) May Exp: +2.0% Prior: +15.0%

4-11 July GB HBOS Plc House Prices (M/M) (SA) June Exp:-1.0% Prior: -2.4%

4-11 July GB HBOS House Price 3Mths/Year June Exp: -5.9% Prior: -3.8%

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