Friday, February 10, 2012

Euro Pares Gain After German Industrial Production

(RTTNews.com) - In the European session on Tuesday, the euro eased against its major counterparts after report showed that Germany's industrial production fell unexpectedly for December.


The data from the Federal Ministry of Economy and Technology revealed that German industrial production declined unexpectedly in December.

Production dipped 2.9 percent from November, when it remained flat. Economists were expecting it to show nil growth as seen in the prior month.

On a yearly basis, growth in working-day adjusted industrial output slowed notably to 0.9 percent from 4.4 percent in November.

The expected rate of expansion for December was 4.3 percent. Likewise, annual growth in unadjusted industrial production eased to 0.8 percent from 4.4 percent.

The euro is now trading at 1.3125 against the greenback and 0.8300 against the pound, compared to early 4-day highs of 1.3169 and 0.8321, respectively.

On the downside, the euro may target 1.30 against the greenback and 0.825 against the pound. The euro ended yesterday's deals at 1.3131 against the greenback and 0.8301 against the pound.

Against the yen, the euro that reached an 8-day high of 101.00 at 5:00 am ET pared gains shortly. The pair is presently worth 100.78 and if the euro slips further, it may target 99.00 level.

The European single currency that advanced to an 8-day high of 1.2087 against the franc at 5:55 am ET fell amid comments from Thomas Jordan, Vice-Chairman of the Governing Board of the Swiss National Bank.

The euro-franc pair is now worth 1.2073 with 1.20 seen as the next downside target level. The pair ended yesterday's deals at 1.2065.

"Even at the current exchange rate, the Swiss franc is still very strong and the SNB remains firmly committed to defending the minimum exchange rate of CHF 1.20 per euro," Jordan said.

Looking ahead, Canada's building permits for December is expected at 8:30 am ET.

nasdaq.com

No comments:

Post a Comment