Germany’s industrial production stronger than expected
Latest figures from the German statistics office Destatis showed that industrial production in Germany expanded strongly in the month of January beating forecasts. Industrial output increased 2.8% during the month, adjusting for seasonal swings and beat the market forecasts of a 2.5% increase. The EURUSD was however unmoved on the data as the single currency awaits for its fate from the ECB's monetary policy meeting tomorrow.
The strong increase in industrial production came on the back of increased production in capital goods output
The data also highlighted a revival in the industrial sector on the back of improved business sentiment which looks to be stabilizing despite a somewhat shaky start to the manufacturing sector earlier in January. Capital goods output was seen rising 6.1% on a month over month basis and come following a sharp decline from December.
Despite the headline price, construction output was seen falling for the second straight month. Analysts argued that this was most likely due to the cold weather than to do with any weakness or a slowdown in the sector.
The EURUSD remains muted for the most part and it is unlikely to see any strong moves in the currency pair today. The European Central Bank's meeting tomorrow will be a major event for the EURUSD and until then the single currency could remain in a holding pattern. There are some initial expectations that the ECB will come out hawkish at tomorrow's meeting which exposes the upside risks in the EURUSD.
How we trade binary?
The 30-minute chart for EURUSD shows prices drifting lower in the descending triangle pattern. Support is seen established at 1.0557 - 1.0555. If we see a bounce in the currency pair at this level, then we can expect to see an upside breakout, above 1.0564, then purchase daily CALL options with a 21:00 GMT expiry as EURUSD could see near term gains.
Target price: 1.0564
Expiry: 21:00 GMT