German industrial orders rebounded in August

<p>The market has largely ignored the strong German industrial orders data released a short time ago. The euro is down 17 pips on the day, mostly since the release at 0800 CET, though bund yields are up 1.6 bps.</p><p>Orders rose 3.9% in August compared to 1.8% expected. In addition, the July reading was revised higher to -11.3% from -11.7%. I suspect the market is having a hard time getting excited about the rebound given the worrisome plunge in last month's data.</p><p>The bounce may also have been a one-off with a 37.9% increase in the manufacture of computer, electronic and optical products. The stats office said it was the electronic ones that were largely responsible for the increase.</p><p>Deutsche Bank on the report:</p><blockquote>"Given the extreme monthly volatility, it is difficult to identify the underlying trend. Comparing May/August with the first four months of the year gives a 2% increase (dom. 1.0%, for 2.6%). Still, real turnover is down by a good half-percent in July/August compared to Q2, which is in line with our call of a 0.3% q/q drop in Q3
GDP. "</blockquote>

This article was written by Adam Button at www.forexlive.com.