German Industrial Production Fails to Impress the EUR Following Disappointing Factory Orders

It’s a busier day on the economic data front. Ahead of the European open, industrial production figures for Germany were in focus.

In April, production fell by 1.0% partially reversing a 2.2% increase in March. Economists had forecast a modest 0.5% rise.

According to Destatis,

• Production in industry excluding energy and construction was down by 0.7%.
• Within industry, the production of consumer goods slid 3.3%, while the production of intermediate goods fell by 0.2%.
• The production of capital goods fell by a modest 0.1%.
• Outside industry, energy production was up by 6.0% in the month, while production in construction declined by 4.3%.
• While down in the month, production was up 26.4% on the same month a year earlier.
• Compared with February 2020, however, production in April 2021 was 5.6% lower.

Market Impact

Ahead of the production figures, the EUR had risen to a pre-stat high and current day high $1.21942 before falling to a pre-stat low $1.21762.

In response to today’s stats, the EUR rose from a post-stat low $1.21766 to a post-stat high $1.21854 before easing back.

At the time of writing, the EUR was down by 0.04% to $1.21845.

Next Up

ZEW Economic Sentiment figures for Germany and the Eurozone and finalized 1^st quarter GDP numbers for the Eurozone.

From the U.S, trade data and all-important JOLT’s job openings will also draw interest late in the session.