THE TAKEAWAY: German industrial production rises 0.2% in November -> Consumer goods production drops 2.2% -> Euro trading unchanged
German industrial production rose for the first time in four months in November, according to the Economy Ministry. Production was up 0.2%, less than the expected 1.0% rise in industrial production but better than October’s revised 2% decline. Industrial production is 2.9% lower than November 2011.
In November, consumer goods production declined 2.2% and energy output declined 3.3%, but manufacturing output rose 0.4%. The Economy Minister said they see Q4 output below Q3 levels, but better industrial production in 2013.
Industrial production made up 28.6% of the German GDP in 2011, so a rise in production could be a good sign for the Euro-zone’s biggest economy. A rebound in the German economy would be Euro positive.
However, the Euro did not significantly react to the worse than expected industrial production. The Euro continues to trade above 1.3000 against the US Dollar in Forex markets, as the key figure could continue to provide support. EURUSD may see resistance at 1.3158, where some resistance has been provided over the past few months.
EURUSD Daily: January 9, 2013