THE TAKEAWAY: German Industrial Production increased 0.3% in December -> Euro traders remain focused on upcoming ECB decision -> Euro trading steady
German industrial production saw an increase in December for the first time in five months. Output rose 0.3% over the month (seasonally adjusted), which was better than the expectations for 0.2% increase in industrial production. Industrial production fell 1.1% from December 2011, according to the German Economy Ministry.
Manufacturing output rose 1.2% in December, while energy production dropped 3.4% over the month. Industrial output declined 2.9% over the fourth quarter.
German economic growth slowed to 0.2% in Q3 2012, as the effects of the Euro debt crisis pressured the German economy. The ECB has predicted a Euro-zone recovery later in 2013, which should also help Germany’s economic growth. Any signs of improved German economic growth are Euro positive.
However, the Euro did not significantly react to the production release in trading against the US Dollar, as many Forex traders remain focused on the upcoming ECB decision and Draghi press conference. At the time of this writing, EUR/USD is trading around 1.3566, and the pair may see resistance by a recent 14-month high set at 1.3710. Support might be seen by a broken resistance line around 1.3500.
EURUSD Daily: February 7, 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 .