U.S. industrial production likely eased in September

U.S. industrial production is likely to have decelerated in September after having grown strongly in the prior month. According to a Wells Fargo research report, industrial production is expected to have eased to 0.2 percent in September. In August, the industrial output had come in at 0.4 percent. Mining had recorded a rise of 14.1 percent year-on-year, as energy production ramped up to record highs.

Manufacturing output was more modest, rising 0.2 percent on the month. Nevertheless, business equipment production rose 1.2 percent, which augurs well for the call of real equipment spending to grow at about a 4 percent rate in the third quarter.

The ISM manufacturing survey has been high, and regional Fed surveys have also indicated to continued sector strength.

“Moving forward, we expect dollar appreciation, higher interest rates and trade uncertainty to weigh on equipment spending, which should moderate slightly in coming quarters”, added Wells Fargo.

At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -51.2908. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex