Euro area’s industrial production data for the month of May is set to be released this week. According to consensus expectations, the currency bloc’s industrial production is likely to have grown in the month after falling in the prior month.
In April, euro area’s industrial production had dropped 0.9 percent on a sequential basis, reversing March’s 0.6 percent rise. So far in 2018, industrial production has been subdued, consistent with the general deceleration in overall economic growth seen in euro area in the first quarter. Real GDP had grown a more modest 0.4 percent in the quarter, restrained partially by subdued growth in gross fixed capital formation, which might also be a drag on industrial output in the coming quarters, noted Wells Fargo in a research report.
Data released earlier in the month indicated that the euro area manufacturing PMI continued its fall seen so far in 2018, falling 0.6 points to 54.9 in June. However, the growth in euro area is expected to stay intact. Industrial production is expected to have rebounded to 1.2 percent sequential growth in May, according to consensus expectations. This underpins the potential for the industrial sector to regain some of its momentum in the second half of the year, stated Wells Fargo.
At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -3.50168, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 137.825. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex