The main currency pair is losing weight on Wednesday afternoon after the publication of weak European statistics.
The euro is weakening, although up to this point, even with intraday volatility and a rather strong swaying, it managed to keep a certain balance. The current quotation of the main currency pair is 1.0821 (-0.3%).
According to statistics released today, industrial production in the euro zone fell more dramatically than expected. In November the index dipped by 0.7% m/m (+ 1.1% y/y) against the October strengthening by 0.8% m/m. The components of the report show that the parameters of the issue of energy (-4.3%) have significantly decreased, and the output of consumer durable goods was reduced. At the same time, some improvements are seen in the component of the production of consumer non-durable goods.
Such marked differences in the major macroeconomic indicators is not a good signal. Before it was clear that there was no formed uniform dynamics, but from ice to fire – that has not been seen for a while.
Well it is clear that European consumers do not want to be wasteful, as it is unclear where the end of the recession and the beginning of growth are. But also outside the euro area the talk is absolutely identical. It is a vicious circle: production is not demanded within the alliance or beyond.
It seems that the effect of today's statistics on the main currency pair will be short-lived. In the afternoon, an updated report released by the US Department of Energy on oil and oil products come out - it is able to influence commodity prices, and, as a consequence, the position of the US dollar.
RoboForex Analytical Department
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