Euro is a little lower today, even after the latest factory output data that indicated that industrial production is on the rise. Even with the better than expected news, the euro is still struggling today.
Risk aversion is evidence today, and that might be holding the euro back a bit in Forex trading, even with the better economic data that has just been reported. Industrial production in November rose by 1.8 per cent according to Eurostat, and that is an improvement over the 1.5 per cent increase in October.
The data indicates that the eurozone economy is ready to pick up, and it was encouraging that Ireland, just exiting its bailout, was one of the leading countries.
Even though the data is encouraging, the realities surrounding the eurozone aren’t as pleasant. There are still concerns about what’s next for the region, and there are still worries about the sustainability of the economic recovery. Plus, today, with European stocks mostly lower, there is a touch of risk aversion that is dragging on high beta currencies like the euro.
For now, the euro is mostly lower. At 14:23 GMT EUR/USD is down to 1.3664 from the open at 1.3675. EUR/GBP is down to 0.8321 from the open at 0.8341. EUR/JPY is up to 141.7355 from the open at 140.7915.
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