EUR/USD Out Of Gas Below 1.3600 As German Industrial Figures Miss
- German Industrial Production (MoM): -1.8% Actual Vs 0.0% Estimated; -0.3% Prior.
- German Industrial Production (YoY): 1.3% Actual Vs 3.6% Estimated; 1.3% Prior.
- EUR/USDextends losses as German Industrial Production Figures are released.
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German Industrial Production reflected a 1.3 percent rise year-on-year. This fell incredibly short of market expectations as industrial output for the Eurozone’s powerhouse was estimated to increase by 3.8 percent year-on-year for the month of May. This follows a prior reading of 1.3 percent (revised lower) for April. On a month-on-month basis, the gauge of industrial sector activity registered a print of negative 1.8 percent versus economists’ forecasts for a 0.0 percent increase. The April reading was also revised to negative 0.3 percent.
Ahead of the data, EUR/USD was drifting south, below 1.3600, with the data causing a dip to 1.3581 after the release. The downward momentum seems to persevere on the backdrop of a weaker Euro against the US Dollar last week. US labor market data revealed the US Unemployment Rate fell to a post-recession low of 6.1 percent and the strong US Non-Farm Payroll figures outpaced markets’ expectation says DailyFX Currency Analyst Christopher Vecchio. He further discusses the diverging monetary policy between the Federal Reserve and the European Central Bank, which will leave the Euro at a disadvantage against the US Dollar going forward. Any further hints on future stimulus expansion from the ECBwould likely bode ill for the Euro says DailyFX Currency Strategist Ilya Spivak.
From a technical standpoint, near term support rests at 1.3500 and resistance at 1.3590 says DailyFX Currency Analyst David de Ferranti. Moreover, DailyFX Senior Currency Strategist Kristian Kerr has noted a move below 1.3590 will turn us negative on the exchange rate.
EUR/USD 5 Minute Chart
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Edward Hyon, DailyFX Research Team
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