- Euro started to trade in a range against the US Dollar after declining towards 1.0800-50.
- EURUSD looks like struggling to gain bids, which if stays for long might push it lower.
- German Industrial Production released by the Statistisches Bundesamt Deutschland posted a decline of 1.1% in September 2015, compared with the forecast of 0.5%.
- French Trade Balance released by MINEFA registered a trade deficit of €-3.38B, which was more than the forecast of €-3.10B.
German Industrial Production
Today, the German Industrial Production that measures outputs of the German factories and mines was reported by the Statistisches Bundesamt Deutschland. The forecast was lined up for an increase of 0.5% in the production in September 2015, compared with the preceding month. However, the result was not as per the market expectation, as the German Industrial Production declined by 1.1%.
Looking at the year-over-year change, the German Industrial Production was even more disappointing. There was an expectation of around 2% gain, but the report pointed that there was an increase of 0.2% in September 2015, compared with the same month a year ago.
The report added that “production of capital goods decreased by 1.4%, the production of intermediate goods by 0.4% and the production consumer goods by 3.2%. Energy production was up 0.3% on the previous month while production in construction fell by 0.9%“.
French Trade Balance
There was another key release, as French Trade Balance report was published released by MINEFA. The outcome was again on the lower side, at there was a trade deficit of €-3.38B, which more than the forecast of €-3.10B.
Technical Analysis – EURUSD
The EURUSD pair after trading as low as 1.0830 found support and managed to recover some ground. The pair is currently correcting higher, but there are many hurdles for buyers on the way up.
In short, the EURUSD Is still trading in the bearish zone, and if sellers remain in control more losses are possible in the near term. An initial support on the downside is around 1.0840-30.
Yours,
Vladimir
