Industrial Production Down by 0.8% in Euro Area

Eurostat found that industrial production in February for the 19 members of the euro area, declined by 0.8% in comparison to January.

The whole of the European Union (EU) also suffered a reduction in industrial activity as this also dropped by 0.7%.

The figures are negative news for economies in both trade areas, as in January 2016 industrial production rose by 1.9% in the euro area, and by 1.5% in the EU.

Although year on year the figures are more positive, as compared with February 2015, industrial production increased by 0.8% in both the euro area and the EU.

The fall in production in February, can be mainly attributed to a 1.8% decline in the amount of non durable consumer goods that have been produced, followed by 1.2% decrease in energy prices.

Durable consumer goods have fallen by 0.4%, plus capital goods by 0.3%, while production of intermediate goods remained stable.

Consumer Prices Increase in France for March

According to the National Institute of Economic Studies (INSEE), the consumer price index in March grew by 0.7% .

Compared to the previous month, this was a rise of 0.4%, while year on year the index declined by a minus 0.1%.

Prices were driven upwards by a similar pattern which occurs every March, where costs increase on manufacturing products following the end of the winter sales, and were hiked by 1.9% compared to February.

Energy prices significantly recovered, leaping up 0.9% month on month, a significant year on year turnaround from minus 6.9% from March last year.

Petroleum products was a key performer in the energy hike, climbing by 2.5% compared to February, reversing the pattern from a minus 13.2% minus year on year total.

Services prices were relatively stable, rising on 0.1% month on month, a 0.9% change compared to March last year.

Food prices also rose by a month on month 0.5%, which outstripped the year on year figures by 0.1% .

Pounds Slips Against the Dollar Amid ‘Brexit’ Polls

The GBP/USD rate has fallen in favour of the dollar, as the pound is currently buying $1.42 GMT, after beginning the day at $1.426.

A latest poll conducted by ICM, has found that from those questioned, more people were now open to a UK exit from the EU.

A total of 45% said that they would be willing to walk away from Brussels, as opposed to 42% who wish to remain in Europe.

The US dollar has also gained strength against the euro, as the EUR/USD rate is now $1.13, falling from $1.138 this morning CET.

Societe General in their daily forex report, said that the euro remains very range bound.

It still by and large tracks the Bund/Treasury spread, albeit trading a little higher than that spread would imply at the moment.

The investment bank also raised the question on the level of support that the euro is receiving from higher oil prices, and whether those gains will continue with regards to the huge oil producers meeting to take place in Doha, this weekend.

They concluded that over the past ten years, there has been a clear correlation between the EUR/USD rate, and the price of a barrel of brent crude, which has benefited the euro.

NASDAQ in their price index, has found that a barrel of crude has risen from under $36 per barrel in the first week in April, up to $41.54 today.