EUR/USD under pressure after German Dec Industrial Production disappoints with -3.5%
|- German Industrial Production slumped by 3.5% MoM in December.
- German Industrial Production also plunged by 6.8% YoY in December.
Industrial Production in Germany dropped more-than-expected in December, the official data showed on Friday; confirming that the manufacturing recession in Europe's largest economy is picking up pace.
The industrial output came in at -3.5% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.2% drop expected and +1.1% last.
On an annualized basis, the German industrial production arrived at -6.8% in December versus -4.0% expected and -2.6% booked in November.
About German Industrial Production
The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).
FX Implications
Meanwhile, the shared currency stalled its corrective mode on the downbeat German industrial figures, pressuring EUR/USD below 1.0985 region. The spot hit a new four-month low at 1.0964 on Thursday.
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