The euro fell 0.2 percent to $1.3550 by 7:45 a.m. in New York this morning after a report indicated that German factory orders declined more than predicted. The Economy Ministry in Berlin said that factory orders fell 3.4 percent in December compared to the previous month sending nervous investors to the perceived safety of the U.S. dollar.
Germany’s factory production and exports have provided much of the Eurozone’s support during the ongoing debt crisis. However, some analysts fear that Germany will prove unable to prop up the region long enough for the proposed spending reforms to take effect.
“We’re used to some fairly disappointing data coming from the periphery and it has been the core that has been holding Europe up and driving growth,†said Ian Stannard, a senior currency strategist at BNP Paribas SA in London. “The fact that we are seeing weaker data at the core of Europe as well is a worrying sign for the euro.â€
Source: Bloomberg
