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Berlin announced that industrial production in July fell by 1.7%. Economists were predicting a decline, but expected only 0.3%. This dragged the euro lower, as Germany is seen as the most stable of the eurozone nations. Earlier this morning, both Germany and France revealed their latest trade balance figures – and both missed market consensus.
The head of the Eurogroup, Jeroen Dijsselbloem, stated that a third bailout for Greece is ‘realistic’. Mr Dijsselbloem believes that the southern European country will need an additional €10 billion to shore up its finances. Greece’s bailout scheme will come to an end in 2014, and if concerns grow that the country will need yet another cash injection we could see the euro decline.
US non-farm payrolls and unemployment data are released at 1.30pm (London time). Economists are expecting an increase of 180,000 on the payrolls report, and unemployment to stay at 7.4%. Historically the non-farm payrolls report was the key announcement, but now traders look more closely at the unemployment figure. If the jobless rate falls, traders could well be selling EUR/USD.