Germany data weighs on EUR/USD
The euro is trading at $1.3373, down 0.1% on the day, after German industrial production only grew by 0.3% in June, while analysts expected an increase of 1.4% in output. This is the second day in a row that German figures have disappointed traders, after yesterday’s factory orders dropped by 3.2% in the same month.
Germany holds a large amount of sway within the eurozone, and when its economy starts to slip it increases the possibility of ECB easing in the future.
Traders are not expecting a change to interest rates from the ECB, but the press conference at 1.30pm (London time) could give us an insight into what it is thinking. If additional easing is mentioned the euro could target $1.33 with $1.3403 acting as resistance.