THE TAKEAWAY: Euro-zone industrial production rose 0.4% in February -> Markit says PMI’s point to another quarter of recession -> Euro trading lower today
Euro-zone industrial production rose 0.4% (seasonally adjusted) in February, beating expectations for a 0.2% rise and up from the revised 0.6% decline in January. Industrial production fell by 3.1% from February 2012, according to Eurostat.
The Netherlands and Slovenia saw the largest rise in production, up 3.4% in each country over February. German industrial production rose 0.9% in February, while French industrial production rose 0.8%.
The Euro-zone has experienced five straight quarters of economic contraction, ending with a 0.6% GDP decline in the fourth quarter. Markit said that based on its PMI surveys, it sees no end to the recession in sight. Signs of economic expansion in the Euro-zone are Euro positive.
However, the slightly better than expected industrial production had little effect on Forex markets. EUR/USD has declined from 1.3100 at the beginning of the session to 1.3050 at the time of this writing, possibly on talks of Cyprus asking for a increase in its bailout package. From here, the key 1.3000 figure may continue to provide support.
EURUSD Daily: April 12, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
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