Global macro overview for 07/01/2019

In November, orders in German industry dropped by as much as 4.3% year-on-year. This is the worst result since August 2012. On the other hand, the data on retail sales increased in November by 1.1% on an annual basis.

In monthly terms, the value of orders in German industry decreased by 1 percent. This allows the global investors to have serious concerns about the condition of the local economy, especially the industrial sector. Poor data from Germany may delay the decision of the European Central Bank to raise interest rates any time soon.

On the other hand, the result of retail sales surprised the market positively. Month-to-month sales increased by 1.4%, while the economists expected that the increase in retail sales in Germany in November will be only 0.3% on a monthly basis. In annual terms, retail sales data have increased by 1.1% and again beat the expectations of -0.4% figure.

The retail sales data in the whole Eurozone were released at the level of 0.6 %, which was in line with expectations on the monthly basis. In the annual terms, the retails sales were worse than the last time, but still, beat the expectations of 0.4% as the released figure was at the level of 1.1%.

Let's now take a look at the German DAX index technical picture at the H4 time frame. The market is trading in a narrow range just above the technical support at the level of 10,700. If this momentum will persistm, then the next target for bulls is seen at the level of 10.928 and then at 11.007. Nevertheless, the longer term time frame trend remains bearish, so the recent move up should be still considered as a local short-term correction upward.

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The material has been provided by InstaForex Company - www.instaforex.com