German Industrial Production Report Gives No Support to The Single Currency
The euro continues to lose positions versus US dollar. The EUR/USD pair is trading at 1.1884 level having lost another 0.33%. The single currency falls despite strong report on the German industrial production.
German industrial production bounced back in March following a surprisingly weak start to 2018. The Federal Statistical Office reported, that industrial output increased by 1.0% mom in March, led by production of capital goods. Economists had forecast a 0.8% increase. Compared with March 2017, German industrial output increased 3.2%. The outcome should come as a relief as it follows a string of soft indicators from Europe's largest economy, signaling a slowdown in growth in the first quarter.
Markets are closely monitoring data in the euro area over the next few weeks to see whether the European Central Bank might be forced to extend monetary stimulus. Economic indicators of the Eurozone and its largest economy, Germany, were soft in Q1. The weak numbers have raised concerns that the ECB may decide to again extend stimulus into 2019. The European Central Bank reduced its stimulus program from EUR 60 billion to 30 billion, while at the same time it extended the program to September.