German and Eurozone Economic Data Fail to Deliver EUR Support

It’s been another busy start to the day on the Eurozone economic calendar this morning.

German industrial production and Eurozone retail sales figures were in focus this morning.

French nonfarm payrolls and German construction figures were also out but had a muted impact on the EUR.

The German Economy

In September, industrial production in Germany fell by 1.1% versus a forecasted 1.0% increase. Production had fallen by 3.5% in August.

According to Destatis,

• Production in industry excl. energy and construction was down 1.5%.
• Within industry, the production of capital goods fell by 2.8% and of intermediate goods by 1.1%.
• Motor vehicle, trailer, & semi-trailer manufacturing increased by 2.1%, partially reversing an 18.9% tumble from August.
• Consumer goods production saw a modest 0.2% rise.
• Outside industry, energy production was up 1.0%, with production in construction rising by 1.1%.

Eurozone Retail Sales

In September, retail sales slipped by 0.3% versus a forecasted 0.3% increase. Retail sales had risen by 1.0% in August.

According to Eurostat,

• Non-food product sales fell by 1.5%, while food, drinks, & tobacco sales rose by 0.7%.
• Automotive fuel sales increased by 1.1%.
• By member state, Estonia (+7.1%), Slovakia (+2.9%), and Luxembourg (+2.3%) recorded the largest increases in sales.
• Germany (-2.5%), however, recorded the largest decline in the month of September.
• Compared with September 2020, retail sales increased by 2.5%.

Other stats

French nonfarm payrolls increased by 0.5% in the 3^rd quarter, with Germany’s HIS Markit Construction PMI up from 47.1 to 47.7.

The stats had a muted impact on the EUR, however, with German industrial production and Eurozone retail sales key.

Market Impact

In response today’s figures, the EUR rose to a post-stat and current day high $1.15631 before falling to a post-stat and current day low $1.15341.

At the time of writing, the EUR was down by 0.15% to $1.15736.

Next Up

U.S nonfarm payrolls for October are due out later today. With the FED green lighting a tapering to the asset purchasing program, a sharp increase in hiring could fuel expectations of a nearer-term rate hike.

The numbers would need to be impressive, however.