EURUSD Slides as German IP Misses Forecast

The Euro continued to stay under pressure, as sellers were active due to tensions in Greece. The recent releases in the US were on the positive side, and on the other hand, the Euro Zone economic data was short of expectation. The Euro continued to slowly grind lower, and traded to a new weekly low today. The EURUSD pair breached the 1.1000 support area to clear the way for more losses in the near term. There was a critical release in the Euro Zone today, as the German Industrial Production report was released, which missed the mark and came below the market expectation.

German Industrial Production

Earlier during the London session, the German Industrial Production data, representing outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for a 0.1% rise in May 2015, compared to the preceding month. However, the outcome was lower compared with the expectation, as there was no change in the German Industrial Production. Moreover, the previous reading was revised down from 0.9% to 0.6%. 

When looking at the sector wise, then production in industry excluding energy and construction was higher by 0.4%. The production of capital goods rose 0.4%, and consumer goods by 1.3%. On the other, there were decreases in production from intermediate goods, energy by 0.2% and 3.1% respectively.

When we consider the yearly change, there was an increase of 2.1% in the German Industrial Production in May 2015, compared with the same month a year ago. There was a revision for the last reading as well, as it was brought down from 1.4% to 1.1%. Overall, the data was disappointing, and ignited a downside reaction in the EURUSD pair.

Technically, the EURUSD traded lower intraday, as Greece fears continued to play on the mind of investors. The pair broken a major support of 1.1000 and traded towards 1.0960. No doubt, the bearish pressure is immense on the shared currency, and as long as there is a fear more losses are possible. On the downside, the next level of interest might be around 1.0910, followed by 1.0850. On the upside, the most important resistance is at 1.1120-40 where buyers struggled time and again.