Industrial Production in Germany rose more-than-expected in June, the official data showed on Tuesday, suggesting that the recovery in the manufacturing sector gradually picking-up pace.
The industrial output came in at +8.9% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. an 8.1% increase expected and +7.4% last.
On an annualized basis, the German industrial production arrived at -11.7% in June versus -19.5% booked in May.
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).
The shared currency shows little reaction to the above forecasts German industrial figures, as EUR/USD keeps its range around 1.1840 amid a broad-based US dollar comeback. The spot is down 0.26% on the day.
EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed.
GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world’s two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.
Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.
Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.
Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.
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