German Industrial Production Disappoints, As Construction Suffers.
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EUR/USD – German industrial production rose 0.6% in January as energy output soared 8.8% on the back on en exceptionally cold winter. The dismal weather sunk construction output by 14.3% leading to the disappointing print, which missed forecasts of 1.0%. Durable goods improving by 4.7%could be a sign that the outlook for growth is improving. The ECB has started to take measures to remove some of the billions of euro that was pumped into the markets during the crisis, but with the region squeezing out a paltry 0.1% growth in the fourth quarter, policy officials continue to proceed with caution. To discuss this and other topics, please visit the EUR/USD forum.
USD/CHF– The Swiss unemployment rate fell to 4.4% from 4.5% in February but remained unchanged at 4.1%, on a seasonally adjusted basis. A improvement was seen in the 15-24 year old age bracket which had been the hardest hit, with the unemployment rate falling to 5.2% from 5.4%. Meanwhile, retail sales surged 4.4% in January beating estimates of 2.3%. Food and beverage sales rose 1.0% to lead across the board gains. An improving labor market should help fuel future domestic demand which may ease the SNB’s concerns over deflation an decrease the likelihood that they will continue efforts to depreciate the Franc. To discuss this and other topics, please visit the GBP/USD forum.
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