Forex: U.S. Industrial Production Jumped 1.1% In November; USD/JPY Neutral
THE TAKEAWAY: [U.S. November Industrial production rose by the most since December 2010] > [Manufacturing rebounded after hurricane Sandy] > [USD/JPY neutral]
U.S. Industrial Production rises more than expected in November and by the most since December 2010, as manufacturers have recovered from superstorm Sandy. According to a report released by the Federal Reserve today, industrial production climbed by 1.1 percent in November after a 0.7 percent decline in October that was revised from a 0.4 percent fall initial reported. The consensus forecast of economists surveyed by Bloomberg News had called for a 0.3 percent rise in November.
Production of motor vehicle and part boosted 4.5 percent and by the most among all the industries. Manufacturing output increased by 1.1 percent in November after a 1.0 percent decrease in previous month, while production at mines rose 0.8 percent in November. Today’s report adds signs of picking up in housing and sustained consumer spending, which helps strengthen manufacturing sector in the U.S. However, at the same time, companies may still face challenges and remain cautious amid concerns on slowdown in global economy and uncertainty of the U.S. budget.
The U.S. dollar remained little changed in the minutes after the U.S. industrial production and manufacturing production report was released. At the time this report was written, the USD/JPY pair was trading at 83.44 yen.
--- Written by Renee Mu, DailyFX Research