Hard data seems to be catching soft data, with German industrial production that confirmed a positive trend seen in the PMIs.
Output, adjusted for seasonal swings and inflation, gained 2.2 percent from January, when it rose a revised 2.2 percent, the Economy Ministry in Berlin said on Friday. The typically
volatile measure compares with a median estimate for a 0.2 percent drop in a Bloomberg survey. Production was up 2.5 percent from a year earlier.
The positive trend in the German economy continues, with industrial production at highes level since 2014. That also bodes well for the whole EMU. source: Bloomberg
The data come a day after a report showed German factory orders recovered in February, led by a jump in domestic demand. The economy expanded at the fastest pace in five years in 2016 and recent indicators have shown private-sector activity accelerating and unemployment at a record low. Even so, national elections, Brexit and uncertainty over U.S. trade policies, could still pose risks for spending and investment in Europe’s largest economy.
Industrial output of investment goods increased 1.1 percent, the report showed. Production of consumption goods rose 1.4 percent, and construction surged 13.6 percent.
The EURUSD showed no reaction to the data. It seems that a consolidation between 1.0680 and 1.0630 will continue until 1:30 pm, when the NFP report is published. source: xStation5
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