Eurozone industrial production improves but no surprise - EUR unfazed
Headline industrial production in the Eurozone rose 0.9% in May, beating expectations of a 0.2% rise after the 0.4% fall in April. However, after strong numbers in both France and Italy earlier in the week, this was largely expected, so we see little response in the EUR as broader risk themes play out.
For EUR/USD, the primary focus is the USD and for this reason, we are seeing some decent support here after a week of focus on Fed policy and a rate cut effectively cemented for the end of the month. However, with Eurozone weakness seen in other parts of the region, traders are unlikely to run away with any topside direction and 1.1280 looks to have capped the market for the week unless NY desks decide otherwise later on today.
We have little data out in the US this afternoon, so it is likely the weekly ranges have been set, though we discount nothing at this stage.
EUR/CHF is coming under pressure from CHF buying this morning - largely against the USD rate though here also, support has contained moves in the mid 0.9800's. The EUR rate is struggling into 1.1150 but also supported into 1.1100 for now.
We could see some movement in EUR/GBP later on, as the default trade seems to be to sell GBP when there is little else to focus on, though we have seen strong resistance through 0.9000 - so only a break down through 0.8950/30 would take the immediate upside pressure off here.