German Industrial Production Sinks, Raising Yet More Red Flags for the EUR
It’s been a quiet start to the day on the Eurozone economic calendar this morning.
Key stats included industrial production figures from Germany.
The German Economy
In August, industrial production slid by 4.0% versus a forecasted 0.6% decline. Production had risen by 1.3% in July.
According to Destatis,
- Production in industry excluding energy and construction was down by 4.7%.
- Producers continued to report about being constrained by shortage of supply of intermediate products.
- Within industry, the production of capital goods slumped by 7.8%.
- Motor vehicle, trailer, and semi-trailers manufacturing tumbled by 17.5%, with machinery and equipment production down 6.3%.
- The production of consumer goods and intermediate goods fell by 2.6% and by 2.4% respectively.
- Outside industry, energy production was up by 4.1%, while production in construction slid by 3.1%.
- Year-on-year, industrial production increased by 1.7% after having been up by 6.0% in July.
In response to today’s stats, the EUR fell to a post-stat and current day low $1.15490 before rising to a post-stat and current day high $1.15707.
At the time of writing, the EUR was up by 0.07% to $1.15642.
From the Eurozone, the ECB monetary policy meeting minutes will be in focus later today. With inflationary pressures building, the markets will be looking for any views on how to tackle persistent price pressure.
From the U.S, initial jobless claims will also draw plenty of attention ahead of tomorrow’s all-important nonfarm payrolls.
Market volatility has picked up, with the EUR struggling to break back through to $1.16 levels. Weak data from the U.S and a hawkish set of minutes could change the dynamic…