Today’s reading out of Germany regarding its industrial production output since last month has given a number of traders reason to smile. Lately, the manufacturing and industrial sectors across Europe have shown ominous sluggishness that has begun to wear on market sentiment.
Today’s higher than forecast reading, however, has given some market analysts a little breathing room in their calls to go long on the region.
Industrial production has always been a prominent factor in a country’s economic outlook. Although it is not the only element to consider, it does provide a glimpse into the vast bulk of what many countries produce. Any slowdown in this sector, therefore, has the potential to wreak havoc on a nation’s worth.
The report, published this morning at 11:00 GMT by Germany’s Destatis, measured the total, inflation-adjusted value of output from mines, manufacturers, and utilities in Germany; the euro zone’s largest economy.
Expectations were for a rise of 0.6%, but today’s reading of 0.7% has allowed EUR traders to adjust their risk exposure to the upside slightly during mid-day trading.
However, traders appear inclined to lean towards safer assets given the recent confusion wrought by the ECB’s policy statements on Thursday. The EUR has therefore continued to lose ground against its primary rivals, and may continue to do so into next week.
Other relevant articles you may like
Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
