Euro area’s industrial production likely dropped in December, to have grown firmly in Q4

Euro area’s industrial production is expected to have grown firmly in the December quarter in spite of the meek finish to quarter. The German industrial production fell surprisingly in December by 3 percent sequentially, which was the worst since 2009. According to a Societe Generale research report, the overall production for the euro area is expected to have dropped 1.8 percent sequentially in December.

But for the fourth quarter as a whole, it appears to have been a strong quarter. Industrial production is expected to have grown by around 0.6 percent quarter-on-quarter in the fourth quarter. Italy and France are likely to have contributed notably.

Euro area’s industrial output is likely to recover strongly in January following a lull in December. Energy production might be stimulated by cold weather, while surveys continue to be strong. The manufacturing PMI of the euro area reached a 69-month high at the beginning of 2017.

At 7:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -24.5581, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -25.578. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex