Germany: Industrial production data disappoints - BBH

Sandeep Kanihama FXStreet Contributor

Analysts at BBH explain that German industrial production unexpected fell for the second consecutive month as economists had been looking for a rebound after a 1.6% decline in October.

Key Quotes

“October was revised to -0.9%, but the November reading showed a 1.4% decline. It appears that there were some distortions caused by holidays and bridge vacations. Manufacturing output fell 2%, led by investment and consumer goods. Energy output jumped 5%.”

“After a slow start and narrow ranges in Asia, Europe is pressing the euro lower. It is the fifth consecutive day of lower lows and the fourth straight session of lower highs. Since violating the November uptrend earlier in the week, the euro has pushed lower. The next immediate target is near $1.1760 and then $1.1710.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.