European Session – Euro rallies after German industrial production beats estimates
May 8, 2013 1:09 pm
The euro received a boost in the European Session after surprisingly better German industrial production data, which eased concerns over the impact the euro zone’s debt crisis is having on the region’s largest economy.
March industrial production rose by a seasonally adjusted 1.2 percent, despite expectations for a decline of 0.1 percent.
Germany is seen s Europe’s engine of growth so any positive data indicating recovery and growth in the economy is positive.
EURUSD jumped to a session high of $1.3146 from a pre-data level of $1.3122. The pair is currently trading at $1.3120 going into the US session, up 0.3 percent on the day.
The euro is unlikely to make large gains as investors are reluctant to push it higher in the wake of European Central Bank’s president Mario Draghi comments on Monday that the ECB was open to further rate cuts.
GBPUSD was helped to an intra-day high of $1.5515 by EURUSD gains on the back of the strong German IP data.
Focus is on the Bank of England’s interest rate announcement tomorrow, though no change is expected. Investors will look out for any hints on future monetary policy.
EURCHF had a strong rally following the release of Swiss consumer price inflation data which fell. The broadly stronger euro after the German IP data further strengthened the euro against the Swiss franc, lifting it to a high of 1.2347, up from the session open of 1.2296.
USDJPY continues to trade a narrow 98.62-99.14 range, with the bias on the upside and not too far from last month’s 3-1/2 year high.
EURJPY was lifted after the German IP data to a high of 130.08.
The euro received a boost in the European Session after surprisingly better German industrial production data, which eased concerns over the impact the euro zone’s debt crisis is having on the region’s largest economy.
March industrial production rose by a seasonally adjusted 1.2 percent, despite expectations for a decline of 0.1 percent.
Germany is seen s Europe’s engine of growth so any positive data indicating recovery and growth in the economy is positive.
EURUSD jumped to a session high of $1.3146 from a pre-data level of $1.3122. The pair is currently trading at $1.3120 going into the US session, up 0.3 percent on the day.
The euro is unlikely to make large gains as investors are reluctant to push it higher in the wake of European Central Bank’s president Mario Draghi comments on Monday that the ECB was open to further rate cuts.
GBPUSD was helped to an intra-day high of $1.5515 by EURUSD gains on the back of the strong German IP data.
Focus is on the Bank of England’s interest rate announcement tomorrow, though no change is expected. Investors will look out for any hints on future monetary policy.
EURCHF had a strong rally following the release of Swiss consumer price inflation data which fell. The broadly stronger euro after the German IP data further strengthened the euro against the Swiss franc, lifting it to a high of 1.2347, up from the session open of 1.2296.
USDJPY continues to trade a narrow 98.62-99.14 range, with the bias on the upside and not too far from last month’s 3-1/2 year high.
EURJPY was lifted after the German IP data to a high of 130.08.
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