German Industrial Production rises by 3.6% in Feb, EUR/USD stays below 1.19

Dhwani Mehta FXStreet

Industrial Production in Germany showed a sharp rebound in February, the official data showed on Friday, suggesting that the recovery in the manufacturing sector may have regained traction.

The industrial output arrived at 3.6% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 2.4% rise expected and -3.5% last.

On an annualized basis, the German industrial production plunged by -6.4% in February versus a -4.0% drop recorded in January.

Read: German Factory Orders meet estimates with 1.2% MoM in Feb

FX implications

The shared currency remains under pressure after the mixed German industrial figures.

At the time of writing, EUR/USD trades 0.15% lower at 1.1894, hovering near fresh daily lows.

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).

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.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold trims losses, back below $5,400

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.