News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Euro Rises on Muted Drop in Industrial Production

Euro Rises on Muted Drop in Industrial Production

Benjamin Spier, Technical Strategist

THE TAKEAWAY: Eurozone industrial production drops 0.8% in April, beats expectations -> Spanish benchmark yields set new 15-year high -> Euro on the rise

Industrial production in the Eurozone was down 0.8% during April, which was still better than the 1.2% fall expected by surveyed analysts. Industrial production for March was revised higher to -0.1%. Compared to April 2011, production was down 2.3%, according to the statistics office of the European Union.

The EC’s 0.8% drop was worse than the EU’s 0.4% drop in industrial production during April. Capital goods led the fall in production, which was down 2.6% in the Eurozone, while energy production was up 6.9%. The biggest decline by country was seen in Portugal, which was down 6.5%, followed by the usually strong Germany which saw a 2% decline in April.

An end to the European debt crisis still seems far off as initial excitement from last weekend’s Spain aid deal has died down and Spanish 10-year bond yields were pushed to 15 year highs yesterday at 6.83 percent. Speculation has risen about the possibility of Italy seeking a similar bailout in the upcoming months.

Euro_Rises_on_Muted_Drop_in_Industrial_Production_body_eurusd.png, Euro Rises on Muted Drop in Industrial Production

EUR/USD rose to two-day highs on the lower, yet better than expected, industrial production results. The pair is up today following two days of little market news. Volatile trading is expected in the markets as anticipation builds for the Greek elections this Sunday.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.