European session review: EUR under pressure after disappointing German industrial production data
07.02.2020, 13:02

European session review: EUR under pressure after disappointing German industrial production data

TimeCountryEventPeriodPrevious valueForecastActual
07:00GermanyCurrent Account December24.12229.4
07:00GermanyIndustrial Production s.a. (MoM)December1.2%-0.2%-3.5%
07:00GermanyTrade Balance (non s.a.), blnDecember18.3 15.2
07:00ChinaTrade Balance, blnJanuary47.2138.6439.16
07:45FranceTrade Balance, blnDecember-5.38-5-4.05
07:45FranceIndustrial Production, m/mDecember0%-0.3%-2.8%
07:45FranceNon-Farm PayrollsQuarter IV0.2% 0.2%
08:00Switzerland Foreign Currency ReservesJanuary771 764
08:30United KingdomHalifax house price index 3m Y/YJanuary4%3%4.1%
08:30United KingdomHalifax house price indexJanuary1.8%0%0.4%


EUR fell against most major currencies in the European session on Friday, weighed down by disappointing German industrial production data for December. 

Destatis reported earlier today that Germany's industrial production declined 3.5 percent m/m in December, following a revised 1.2 percent m/m advance in November. That represented the biggest drop in industrial activity since January 2009. Economists had forecast a fall of 0.2 percent m/m. In y/y terms, the German industrial output tumbled 6.8 percent after a 2.5 percent drop in November. Economists had expected a 3.7 percent decline. 

In addition, another report from Destatis revealed that Germany's trade surplus widened to EUR 15.2 billion in December 2019 from EUR 14.1 billion in the same month of the previous year, but narrowed from EUR 18.3 billion in November 2019. According to the report, exports advanced 2.3 percent y/y in December, while imports gained 1.2 percent y/y. In 2019 as a whole, however, Germany's trade surplus narrowed to EUR 223.6 billion from EUR 228.7 billion in 2018, with exports and imports rising 0.8 percent and 1.4 percent, respectively.

Elsewhere, USD traded higher against its major counterparts ahead of the release of the U.S. employment report (due at 13:30 GMT). It is expected that the report will confirm that the U.S. labour market is in robust condition. The dollar index, a measure of the value of the U.S. dollar relative to the value of a basket of currencies, edged 0.1% higher to 98.57. Solid jobs data could boost the U.S. currency further.

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