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EUR/GBP Signal - German industrial production - 07 Feb 2017

Signal details
Entry Price: 
0.8600
Close Price: 
0.8542
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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German industrial production fell 3% in December 2016 on a month over month basis following November's 0.5% revised increase from the previously estimated 0.4%. Production in industry which excludes energy and construction fell 3.4% and production of capital goods fell by 5.4%, driving the declines in December.

The industrial production data disappointed as economists were expecting to see a 0.2% increase on a month over month basis. The euro has turned weaker after yesterday, ECB President Mario Draghi testified to the EU parliament in Brussels where he stressed that the ECB was ready to expand QE if required.

Although the British pound is also hit with uncertainty, the gains are likely to outperform that of the euro. The EURGBP bias remains to the downside. Therefore, purchase daily PUT options at 0.8600 for a 21:00 GMT expiry as the recent bounce to the upside is showing signs of exhaustion currently.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.