Wednesday, 9 Mar 2011

Euro Soars after German Industrial Production rises 1.8%

The euro erased losses from morning trading against the U.S. dollar after a report showed that German industrial production expanded in January. The total inflation-adjusted value of output produced by manufacturers, mines and utilities rose by 1.8 percent, signaling that the German economy is recovering in-line with expectations.

The euro gained about 60 pips against the dollar after the German release, and the EUR/USD pair is currently trading near the 1.3940 level. The euro also gained about 25 pips vs. the Japanese yen and British pound.

Later on today, the Energy Information Administration (EIA) will release the U.S. Crude Oil Inventories report. The current expectations are that the number of barrels of crude oil held in inventory by commercial firms during the past week rose by 0.8M. If the end result will be higher, crude might undergo another bearish session.