Eurozone Industrial Production drops by 0.3% MoM in June vs. -0.2% expected

Dhwani Mehta FXStreet

Eurozone’s Industrial Production in Germany showed a bigger-than-expected drop in June, the official data published by Eurostat showed on Thursday, suggesting that the recovery in the manufacturing sector is faltering

The industrial output in the bloc arrived at -0.3% MoM vs. a 0.2% drop expected and -1.1% last.

On an annualized basis, the industrial output rose by 9.7% in June versus a 10.4% increase expected and May’s 20.6%.

FX implications

The shared currency remains better bid tone downbeat industrial figures, unperturbed by the data.

At the time of writing, EUR/USD gains 0.06% on the day to now trade at 1.1743, with the upside still capped below 1.1750 ahead of the US PPI and Jobless Claims data.

About Eurozone Industrial Production

Industrial Production is released by Eurostat. It shows the volume of production of Industries such as factories and manufacturing. Uptrend is regarded as inflationary which may anticipate interest rates to rise. Usually, if high industrial production growth comes out, this may generate a positive sentiment (or bullish) for the EUR, while low industrial production is seen as a negative sentiment (or bearish).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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