Euro area industrial production beats expectations; EUR/USD still lower

Euro area industrial production beats expectations; EUR/USD still lower

14 September 2015, 13:09
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Euro-area industrial production rose more than economists expected in July as output rose in three of the region’s four largest economies.

The European Union's statistics office said earlier Monday that production in the euro area added 0.6 percent from June, when it dropped a revised 0.3 percent - the strongest rate since February. On the yearly basis, output was up 1.9 percent.

The data add to evidence that the region is gaining momentum, even as European Central Bank President Mario Draghi warns that a China-led slowdown in emerging markets poses a downside risk.

Separately, economic confidence was reported to be at a 4-year high. Unemployment surprisingly declined in July and growth in the first half was stronger than initially reported.

In Germany, industrial output rose 0.5 percent, in Spain - 0.6 percent and 1.1 percent in Italy, according to the report. Production in Greece jumped 4.3 percent in July, indicating the first rising since March.

By contrast, French output fell 0.8 percent after a 0.2 percent drop the previous month.

The euro seems to be hardly impacted by the positive news with EUR/USD last seen at 1.1321, lower 0.15%.

Elsewhere, sentiment on the dollar remained quite fragile amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to delay hiking interest rates on Thursday.

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