German factory orders fall sequentially in November, industrial output to grow in months ahead

German factory orders dropped in November on a sequential basis. New orders fell 0.4 percent month-on-month. Most economists had projected stagnation in the month. Stripping the very volatile big ticket orders, order intake indicated a solid rise of 1.8 percent. This signifies that the trend in incoming orders continues to indicate a clear upward trend. This implies that industrial production in Germany will grow in months ahead, noted Commerzbank in a research report.

This is expected to have risen considerably in November alone, which is seen in the 46 percent rise in turnover in November as compared to October. The positive scenario of new orders is accompanies by other optimistic leading indicators such as the Ifo Business climate index, which at present is at the highest levels since reunification. This is barely surprising given the ECB’s continued extremely loose monetary policy and the dynamics of the global economy. The PMI indices in the euro area, the U.S. and China are at high levels.

“This generally very positive environment is likely to spur the German economy, which is why we expect GDP to expand by 2.5 percent in 2018”, added Commerzbank.

At 13:00 GMT the FxWirePro's Hourly Strength Index of Euro was highly bearish at -160.236, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 75.8625. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest