German Industrial Production misses estimates with 0% in Dec, EUR/USD unfazed

Dhwani Mehta FXStreet

Industrial Production in Germany showed no growth in December, the official data showed on Monday, suggesting that the recovery in the manufacturing sector is faltering

The industrial output arrived at 0% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.3% rise expected and 0.9% last.

On an annualized basis, the German industrial production dropped by 1% in December versus -2.5% 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

The shared currency remains little affected by the dismal German industrial figures.

At the time of writing, EUR/USD trades neutral at 1.2039, with the upside attempts limited by the rally in the US Treasury yields amid relfation trades.

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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