The Euro is looking stable. Overview for 16.02.2021
EURUSD is slightly growing on Tuesday afternoon and looking quite confident.
The major currency pair remains positive on Tuesday. The current quote for the instrument is 1.2149.
At the same time, the statistics published by the Euro Area don’t put significant pressure on the pair but probably temporarily. The data revealed yesterday showed that the Industrial Production in the region dropped 1.6% m/m in December after adding 2.6% m/m the month before and against the expected reading of -0.4% m/m. On YoY, the indicator lost 0.8% against the expected reading of -0.3%.
By the way, it’s the first decline in the indicator over the previous three months. As for 2020, the Industrial Production in the Euro Area lost 8.7%.
The components of the report show that the capital goods lost 3.1% and the non-durable goods shrank by 0.6%. On the other hand, energy and intermediate goods rose by 1.4% and 1.0% respectively.
Cold winter and active lockdowns in major economies maintained the demand for energies, while needs for capital goods did go down. January and February readings might be pretty similar but the situation may dramatically change in March.
Later today, the Euro Area is scheduled to report on the GDP for the fourth quarter of 2020 and that may be very interesting. The indicator is expected to drop 0.7% q/q. As always, the stronger the reading, the better for the Euro.