Nick Nasad
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Euro-Zone Industrial Production Points to a Weak 3rd Quarter

Slightly dated info now as we are in the middle of the NY morning trading, but important to store the implication of this Euro-zone macro release in your minds.

Best done by seeing the visual:

  • Compared to a consensus estimate of a 0.6% increase, industrial production slid 1.5% in August. 
  • For the 3rd quarter then, we have July's 0.6% increase and today's 1.5% decline, which averages out to -0.45%, not a good sign.
  • What this report will likely do is keep the ECB fairly dovish.
  • As a result the EUR may be weaker against currencies with silghtly more hawkish central banks or economic data.
  • My main preference continues to be the EUR/GBP, though we are at an important daily support.  

- Nick