Euro Climbs on a Sharp Rise in German Industrial Production
THE TAKEAWAY: German industrial production rises by 1.2% in March, better than expected -> Bundesbank predicts GDP growth in Q1 -> Euro trading slightly higher
German Industrial Production was reported today to have risen at the fastest pace in a year in March, thereby sending the Euro slightly higher. Industrial output rose by 1.2%, beating expectations for production to decline 1.2% and better than the revised 0.6% rise reported for February. Industrial production declined 2.5% from March 2012, according to the Economy Ministry.
German manufacturing output rose 1.4% over March, compared with the 2.2% rise in factory orders reported yesterday. Energy output rose 4% over March, while production of consumer goods increased by 1% over the month. The German Economy Ministry said output should continue to rise in the coming months.
The German economy declined by 0.6% in Q4 of 2012, and single currency buyers are hoping that the Euro-zone’s biggest economy returned to economic growth in Q1. The Bundesbank predicted in February that the German economy would return to growth in Q1 on industrial production. However, the German composite output PMI declined below 50.0 in April for the first time in five months.
The Euro rose about twenty points towards 1.3150 against the US Dollar, following the industrial production release. The beat of expectations was partially foreshadowed by yesterday’s report of a sharp rise in March factory orders. EUR/USD may continue see support by a rising trend line around 1.3100, and resistance may be provided by a two-month high recently set around 1.3242.
(How does a Currency War affect your FX trading? Take our free course to find out!)
EURUSDDaily: May 08, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.