Euro Kept Afloat by German Economic Recovery

EUR had seen much-needed gains, following news of German economic recovery, paired with hopes of further economy stimulus in the near future. 

German factory orders have risen 10.4% in May, with demand rebounding after quarantine restriction lifting.

“After two devastating months, today’s increase is the largest monthly increase ever, but even after today’s increase, order books are some 30% below the first quarter levels. Today’s industrial orders data brings two important messages: the lifting of the lockdown measures has brought V-shaped surges in activity but the return to pre-crisis levels will not be easy,” analysts at ING comment.

Following this, all eyes are on additional stimulus in the face of recovery funds - a decision expected to be made during the meeting of euro finance ministers this week, before the July 17–18 global leaders’ summit.

On existing information, EUR/USD had already gained 0.4%, causing a jump to 1.1294, while EUR/GBP climbed 0.3% to 0.9032.

*The products advertised are only available to clients under Fondex Limited Seychelles (SDL No: SD037).