Forecast: How will German factory orders data affect 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 May, in one of the day’s major FX news events.

The data is expected to show that new orders rose 0.5 percent during the month, according to two major financial news outlets, after growth of 2.8 percent in April.

The Deutsche Bundesbank, 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.

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Given the current FX analysis, lower-than-expected growth in orders, or even a decline, could very well push EUR/USD down toward immediate support around Tuesday’s open, 1.2537.

Should the data show greater-than-forecast increase in factory orders, however, the currency pair could be lifted toward resistance around the high of May 11, 1.2803.

In any event, the decision is likely to help set the tone of the rest of the day’s FX news/info.

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