When is the German Industrial Production and how could it affect EUR/USD?


Overview

Eurozone's manufacturing powerhouse Germany will publish Industrial Production figures for the month of July at 06:00 GMT.

The data is expected to show the factory activity expanded at a seasonally adjusted rate of 0.3% month-on-month in July, having dropped 1.5% in the preceding month.

Lead indicators point to weakness

German factory orders or contracts for goods ‘Made in Germany’ fell 2.7% month-on-month and 5.6% year-on-year in July.

Meanwhile, the headline IHS Markit/BME Germany Manufacturing PMI had dropped to a seven-year low of 43.2 in July, mainly due to the steep drop in new export orders since 2009.

Put simply, the Industrial Production seems to have taken a big hit in July.

Impact on EUR/USD

A drop in the German Industrial Production will likely exacerbate recession fears, possibly triggering a sell-off in the common currency. The EUR/USD pair is already on the defensive, having created a Doji candle on Thursday.

The EUR may pick up a strong bid if the German data blow past expectations. The EUR/USD pair, however, needs to climb the Doji candle's high of 1.1085 to revive the bullish outlook put forward by a bullish candlestick pattern created earlier this week.

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).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD under pressure under 1.1850 amid US election concern

EUR/USD is under some pressure below 1.1850 the anti-risk dollar is drawing haven bids on reports of meddling in US elections and fading prospects of an imminent US stimulus deal. US jobless claims are eyed.

EUR/USD News

GBP/USD drops below 1.31 amid negative rate talks

GBP/USD has slipped under 1.31 after BOE member Haldane reiterated the bank is studying negative rates. Earlier, the resumption of Brexit talks boosted the pound. Coronavirus measures and restrictions are eyed.

GBP/USD News

Gold off lows, still in the red around $1920 region

Gold traded with a mild negative bias through the early European session, albeit has managed to trim a part of its daily losses to the $1911-10 region.

Gold News

Forex Today: Foreign intervention in US elections weighs on mood, jobless claims, politics eyed

Concerns about foreign intervention in the US elections have weighed on the market mood, allowing the dollar to recover after Wednesday's losses. Intense Brexit talks resume in London, boosting the pound.

Read more

WTI Price Analysis: Recovery remains capped below 100-DMA

WTI (futures on NYMEX) is fading its recovery attempt in the European session this Thursday, as the risk-off sentiment dominates amid surging coronavirus cases in the Old continent and diminishing prospects of a US fiscal stimulus deal. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures