Factory orders were up 2.5 percent in June rather than the 0.5 percent expected. However, on the year factory orders still declined -3.6 percent. The report did little to alleviate concerns that the Eurozone’s largest economy is headed for recession. Sebastian Dullien, an Economist at the Macroeconomics, commented: “The German economy is currently hanging by a thread.” Meanwhile, the pound rose despite the year-on-year UK BRC Like-For-like Retail Sales figure for July coming in at 0.1 percent rather than 0.5 percent.
No-deal Brexit fears are also keeping the pound restrained.
According to the latest reports, Prime Minister Boris Johnson has no intention of renegotiating the withdrawal agreement with the EU.
A spokesman for Downing Street said: “The fact is the withdrawal agreement has been rejected by parliament three times and will not pass in its current form so – if the EU wants a deal – it needs to change its stance.”
“Until then, we will continue to prepare to leave the EU on 31 October.”
The pound to euro exchange rate is likely to remain volatile this week with Sterling traders becoming increasingly jittery as both the UK and the EU are now working on the assumption of a no-deal Brexit.