Euro little changed in a steadier morning part of session

Monday, Dec 08 2014

It is a steadier European part of session for euro which is being traded around 1.2270 level. Only minor importance German Industrial Production figures were released. In October 2014, production in industry was up by 0.2% from the previous month on a seasonally adjusted basis, in line with market forecasts.

In October 2014, production in industry excluding energy and construction was up by 0.2%. Within industry, the production of intermediate goods (0.8%) and the production of consumer goods (0.5%) increased. The producers of capital goods, however, reported a decrease (–0.4%) of production on the previous month. Energy production in October 2014 fell by 1.1%, while the production in construction increased by 1.4%.

Markets are still weighing on last week ECB Meeting as well as NFP figures. ECB President Mario Draghi said last week, that there will be new monetary measures, however, we can expect them in the first quarter in 2015, what indicates that it is not likely that this will happen during ECB next meeting in January.

Besides that, euro still remains lower as NFP data released on Friday showed much better than forecasted data. This indicates stability on US labour market as well as fall in number of unemployed, which could mean that Fed could be raising its interest rates sooner than expected.

Rest of the session should be a steadier one since there will be no major data releases both from Eurozone and USA. Pair is likely to find support around 1.2260 level and resistance above 1.23 handle.

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