Germany Factory Orders Improve, Euro-Dollar (EURUSD) Rebounds From Intraday Low

German August Manufacturing Orders rose 3.6% m/m, after a 1.3% m/m decline in July. This was much better than our median of 0.8% m/m and July data were revised up from -1.7% m/m reported initially. However, this was the first rise in nine months and the August number is still only a partial rebound with orders down 0.8% in a less volatile two months comparison. Orders were down 7.6% y/y in August, after -0.3% y/y in July. The breakdown showed that domestic orders rose 3.7% m/m in August, after falling 2.2% m/m in July, while foreign orders were up 3.5% m/m, after falling 0.3% m/m in the previous month. German orders data have been a good leading indicator for both German and eurozone GDP one quarter ahead and the weak trend adds to the arguments for a rate cut from the ECB, despite the partial rebound in August. Meanwhile, the euro-dollar (EURUSD) bounced back to hold around 1.3580 after touching an intraday low of 1.3515.