Trade Desk Thoughts - German Industrial Production

German Industrial Production Actual -1.8%, Expected -0.5%, Previous 0.1% (revised from 0.2%)

Release Explanation: Measures the the total value of the output from mines, industrial factories and utilities is in the Industrial read. The value of manufactured goods is in the Manufacturing read. The Shipment number covers the amount sent abroad. Capacity Utilization cover at what rate Factories are running at compared to the maximum.

Trade Desk Thoughts: In July, German Industrial Production fell by 1.8% from one month earlier, much lower than analysts' expectations of -0.5%. Compared to August 2007, industrial production fell by 0.6%, in seasonally adjusted terms. The release shows that German industry is in a downward trend, after being in an expansion phase from the beginning of 2005 until late 2007.

Forex Technical Reaction: The euro weakened 15 pips after the release and is now testing the low of the previous session. Against the swissy, the euro moved flat, although earlier the pair had advanced 60 pips.

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