Euro-Zone Industrial Production Unexpectedly Rises for the 2nd Month
THE TAKEAWAY: Euro-zone industrial production is up 0.6% in August -> 2 straight months of improving production are a good sign for economy -> Euro trading unchanged
Euro-zone industrial production surprised expectations and increased in August. Production increased by 0.6% (seasonally adjusted) for the second straight month, beating expectations for a 0.4% decline in industrial production. Industrial production was also 2.9% lower than August 2011, according to Eurostat.
Durable consumer goods increased by 3.9% in August, while production of non-durable consumer goods was up 1.3%. Production of energy goods was up 0.9%. Portugal saw the biggest monthly rise in industrial production, up 6.8%, Finland saw 1.1% decline in industrial production.
The Euro-zone GDP declined for the first time since 2009 in the second quarter, and Euro investors are looking for a sign of a recovery from the Euro debt crisis. Therefore, rising industrial production could be a sign of an improvement to the Euro-zone economy and consequently Euro-positive.
However, the Euro did not significantly react to the better than expected industrial production numbers. EURUSD continues to trade around 1.2960, following an earlier day rally that found resistance near 1.2990. Support could be provided by the key 1.2900 figure.
GBPUSD 15-minute: October 12, 2012
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