Home · Business · Sep 7 archive
Euro Loses Ground Against British Pound Amid German Industrial Production Drop
Developing
In Short: German Industrial Production declined 1.1% MoM in July, leading to losses for the Euro against the British Pound.
Data released by Destatis on Monday indicated that Germany’s Industrial Production fell 1.1% MoM in July, a decline from the previous 0% (revised from 0.2%). This economic data contributed to the Euro (EUR) losing ground against the British Pound (GBP) during early European trading hours, with the EUR/GBP cross trading around 0.8585.
The decline in the Industrial sector activity, which fell by 1.6% YoY in July compared to a decline of 0.5% in June, suggests a bumpy road for Germany as it seeks to overcome years of economic malaise. Analysts noted that the report highlights the challenges Germany faces in its economic recovery.
The Euro's performance against the British Pound was further influenced by the German economic data, attracting some sellers and causing the EUR/GBP cross to lose ground during early European trading hours.
What's confirmed
What's still developing
- In the daily chart, EUR/GBP holds a neutral tone as it sits between near-term support and overhead moving-average resistance.
Sources
- FXStreetlink