EURUSD Barely Lower After Stronger German Industrial Production Data
THE TAKEAWAY: German Industrial Production (MAY) > Monthly: +1.6% from -2.1%, exp. +0.2%; Yearly: +/-0.0% from -0.6%, exp. -1.2% > EURUSD BEARISH
German Industrial Production rebounded in May, but not enough to overcome April’s losses. Monthly production increased by 1.6%, well-above the forecasted 0.2% growth figure, according to Bloomberg News. However, considering that April’s monthly production contracted by 2.1%, May’s growth did not offset the losses from the month prior. On a yearly basis, Industrial Production was unchanged, which technically is better than the forecasted 1.2% contraction.
EURUSD 1-minute Chart: July 06, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
In the wake of the news, the Euro fell across the board, with the more notable declines coming against the Japanese Yen and the US Dollar. The EURUSD fell from 1.2379 to as low as 1.2369, but was trading back at 1.2376, at the time this report was written. Ranges are expected to be tight for the next few hours, leading up the crucial US Nonfarm Payrolls report at 08:30 EDT / 12:30 GMT.
--- Written by Christopher Vecchio, Currency Analyst
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