HomeEuro Moves Higher Against Dollar On German Industrial Output and Other Top Forex News
Euro Moves Higher Against Dollar On German Industrial Output and Other Top Forex News
Thursday, May 9, 20130
The euro rose to its strongest level all week against the dollar on Wednesday after unexpectedly strong German industrial output tempered expectations for further rate cuts by the European Central Bank.
German industrial output jumped 1.2% in March, the largest increase in 12 months and well above economists expectations of a 0.1% decline. The data comes on the back of yesterday’s report which showed German factory orders beat expectations in March, rising 2.2%, the fastest rate of growth since October 2012.
During the U.S. morning session, EUR/USD was up 0.75% at 1.3177, from a session low of 1.3073 and off from a high of 1.3194.
More Coverage of the Day’s Top Story
Quartz: Germany’s industrial output was surprisingly solid, but it’s too early to hail it as a sign of recovery. – Germany may be on the mend. Industrial production grew 1.2% month-on-month in March; analysts had expected a contraction. Energy output drove a lot of this: It was 4.0% higher than in February, which itself had been 0.8% up on January. And that’s after inclement weather in March suppressed construction activity, which should therefore make up ground in April. However, look at the same trend year-on-year, and the comparison suddenly looks rather less fantastic.
Dean Popplewell: The euro bull is being eased along. – The 17-member single currency continues to kick on, very much eyeing tomorrow’s option strike price of 1.3200 on the topside. Rumors ranging from the ECB is looking at buying bad loans from southern Europe to the council debating whether to purchase various banks ABS has been providing the EUR support on pullbacks this morning. Even German industrial production data surprise to the upside is aiding the EUR bulls – coming fast on the heels from yesterday’s positive German industrial orders print.