Comments continue to trickle out of the Euro-zone, with European Central Bank President Jean-Claude Trichet saying at a press conference that recent indicators of growth had been better than anticipated and stabilization is “something which seems to be confirmed at the global level.”
While Trichet said there is still “a bumpy road ahead” and “we have to remain prudent and cautious,” he stated “we’re probably…out of the period of free fall.” Two economic reports from the region backed his statements up, as the Sentix investor survey of German optimism on the Euro-zone rose to -14.6 from -17.0 while German factory orders rose for the fifth straight month in July at a rate of 3.5 percent. That said, German orders remain down a whopping 19.8 percent from a year earlier, and while this is up from the record low of -38 percent reached in February, it still highlights the degree of the global recession and its impact on export-dependent nations like Germany.
On Tuesday, German data is likely to highlight recent trade improvements once again, as exports are forecasted to have risen for a third month in July, this time at a rate of 1.2 percent, while imports are projected to have risen by 1.0 percent, which could ultimately leave the trade balance down slightly at 11.3 billion euros from 12.2 billion euros. Furthermore, German industrial production is expected to have risen 1.6 percent in July, which may push the annual rate up to a 7-month high of -15.8 percent from -18.1 percent.
Related Article: Euro Weekly Trading Forecast
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