German factory orders dropped sharply by -2.2% mom in May, much worse than expectation of -0.1% mom. Looking at some details, domestic orders increased by 0.7% mom but foreign orders plunged -4.3% mom. New orders from Eurozone dropped -1.7% mom while orders from other countries dropped -5.7% mom.
The contraction was also broad-based. Intermediate goods orders dropped -1.5% mom. Capital goods orders dropped -2.8% mom. Consumer goods orders dropped -0.7%.
EUR/USD trades mildly lower in European session today but that’s mainly due to Dollar’s pre-NFP recovery. German 10-year bund yield breached ECB’s deposit rate (-0.4%) for the first time yesterday. It’s recovering mildly today, at -0.394 for the moment. But -0.4 level remains vulnerable.
