Forecast: How will German factory orders data impact EUR/USD?

NEW YORK (Forex News Now) – Germany’s central bank is due on Wednesday to publish a report on the number of new purchase orders placed with manufacturers in August, in one of the day’s major realtime FX news events.

The Deutsche Bundesbank is expected to say new orders rose 0.9 percent during the month, after a decline of 2.2 percent in July, according to two currency market trading news outlets.

The central bank is scheduled to release the report at 10:00 A.M., GMT; as such, the data is likely to dominate European morning currency trading – at least until the release of important U.S. job figures at 12:15 P.M. by the payroll processing company ADP.

Given the current EUR USD analysis, lower-than-expected growth in orders, or even a decline, could push EUR/USD down toward support around last Thursday’s low, 1.356.

Should the data show greater-than-forecast increase in factory orders, however, the currency pair could be lifted toward resistance around the high of Feb. 3, 1.4026.