Following the December drop, foreign orders are expected to lead the recovery consistent with the sharp improvement in the foreign orders assessment reported in the latest Ifo surveys. German manufacturing orders are expected to bounce back, being up 2.1% m/m in January. "Recent Euro-region manufacturing data revealed expansion at the fastest pace in 19 months, primarily led by increased exports throughout the economy," said Richard Lee, Currency Analyst at Forex Capital Markets LLC. "Meanwhile, plant and machinery orders accelerated 25 percent in January, primarily from a 27 percent increase in domestic demand," he added