German industrial production posts a 3.0% increase in January despite the Coronavirus crisis

The day to day economic data is gaining more importance than ever before amidst the rapidly spreading Coronavirus that is keeping the financial markets under pressure. The data that usually goes unnoticed is now under scrutiny to gain better and deeper insights into how the health emergency is affecting the financial markets and to what extent.

The Federal Statistical Office of Germany released its monthly report on industrial production for January. Printing better than expected, the data contributed to sustaining the upward rally in Eur/Usd in the forex market on Monday.

Analysts Had Expected A 1.7% Growth In German Industrial Production In January

In an earlier estimate, analysts had anticipated the German industrial production index to gain 1.7% in January. Data for December was also downwardly revised to record production in German industries to have contracted by 2.2%. The original reading for December announced earlier highlighted a much bigger 3.5% decrease in the index in December.

In Monday’s data, Destatis revealed a significantly higher 3.0% improvement in German industrial production. The aforementioned reading (adjusted) highlights the increase as compared to the figure for the previous month.

Monday’s data also highlighted the largest European economy to have posted a 2.9% increase in production in the construction and energy industries. Within such industries, a 5.1% growth was revealed in intermediate goods production while the production of capital goods in Germany recorded a 2.1% improvement in January.

In terms of consumer goods, the Federal Statistical Office of Germany announced no change as compared to the previous month. Outside industry, on the other hand, the construction sector posted an increase of 4.7% in production while that of energy saw a 0.2% growth in production in January.

Response In The Forex Market

The U.S dollar index was seen tumbling on Monday that translated to a significant movement in the forex market. One of the most traded currency pair in the forex market, Eur/Usd, was reported to have surged to as high as over 1.15 level. The gain, however, was unsustainable in its entirety with the pair dropping below 1.15 level later in the day. At the time of writing, Eur/Usd is exchanging hands at around 1.1450.

According to the technical analysts, Eur/Usd is likely to see an immediate resistance on the upside at 1.1495 level. Breaking above this resistance will open the way for the next, stronger resistance at 1.1550.