Forex - EUR/USD higher on upbeat E.Z. industrial production

Published 10/12/2012, 05:42 AM
Updated 10/12/2012, 05:43 AM
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Investing.com - The euro was higher against the U.S. dollar on Friday, after positive industrial production data from the euro zone, although euro zone debt concerns remained.

EUR/USD hit 1.2985 during European morning trade, the daily high; the pair subsequently consolidated at 1.2965, rising 0.29%.

The pair was likely to find support at 1.2826, Thursday's low and resistance at 1.3072, the high of October 5.

Official data earlier showed that industrial production in the euro zone rose unexpectedly in August, rising 0.6% after an increase of 0.6% the previous month.

Analysts had expected industrial production to fall by 0.4% in August.

But concerns over the worsening of the euro zone's debt crisis re-emerged after top economists slashed their growth forecasts for Germany on Thursday, and warned that public support for financial aid for struggling countries was evaporating.

Leading economic research institutes said they now expect gross domestic to increase by only 1% in 2013 instead of 2% in the currency bloc's largest economy, adding that the region's financial woes are hurting business spending on new equipment and production facilities, a key component of growth.

Elsewhere, the euro was higher against the pound with EUR/GBP adding 0.28%, to hit 0.8080.

Later in the day, the U.S. was to produce official data on producer price inflation. In addition, the University of Michigan was to release preliminary data on consumer sentiment.


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