German Industrial Production unexpectedly drops by 2.5% in Jan, EUR/USD stays below 1.19
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Industrial Production in Germany showed a drop in the first month of 2021, the official data showed on Monday, suggesting that the recovery in the manufacturing sector is losing further traction.
The industrial output arrived at -2.5% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.2% rise expected and 0% last.
On an annualized basis, the German industrial production dropped by -3.9% in December versus a -1% drop recorded in December.
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
The shared currency remains under pressure after the disappointing German industrial figures.
At the time of writing, EUR/USD trades 0.17% lower at 1.1896, having hit fresh four-month lows at 1.1889 pre-data release.
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