Industrial Production Figures from France Weighs on the EUR ahead of the ECB…

It’s was quieter day on the economic data front this morning. Ahead of the European open, French nonfarm payrolls for the 1^st quarter were in focus along with French and Italian industrial production figures.

The French Economy

In the 1^st quarter, nonfarm payrolls increased by 0.3% following a 0.3% rise from the previous quarter. With COVID-19 lockdown measures in place, the numbers had a muted impact on the EUR.

Industrial production figures for April disappointed, however.

In April, industrial production fell by 0.1% versus a forecasted 0.5% increase. Production had risen by 1.0% in March.

The Italian Economy

In Italy, industrial production rose by 1.8%, following a 0.3% increase in March. Economists had forecast a more modest 0.3% increase.

Year-on-year, production was up by 79.5% versus a forecasted 72.2% rise. In March, production had been up by 38.4% year-on-year.

Market Impact

Ahead of the trade data, the EUR had risen to a pre-stat high and current day high $1.21816 before falling back to sub-$1.2170 levels.

In response to the French industrial production figures, the EUR rose to a post-stat high $1.21739 before sliding to a post-stat low and current day low $1.21536.

Better than expected production figures from Italy provided some support but not enough to reverse the morning loss.

At the time of writing, the EUR was down by 0.17% to $1.21600

Next Up

The ECB monetary policy decision and press conference along with jobless claims and inflation figures from the U.S.