Industrial production in France, the Euro zone's second biggest economy, fell more than expected in October, the National Institute of Statistics and Economic Studies reported. French industrial output dropped 0.8% on a monthly basis, after being flat in the preceding month, while analysts had expected a 0.2% growth for the reported month. On a year-to-year basis, industrial production also declined 1.0% in the month under review, after the 0.3% drop in September. Manufacturing production declined 0.2%, after adding 0.3% a month earlier, while markets had forecast the gauge to come in unchanged. Manufacturing activity in France fell further in November, Markit's survey revealed last week. The final manufacturing PMI fell slightly lower to 48.4 in November, from 48.5 seen a month earlier, albeit overshooting expectations of 47.6. The sector has now been in the red territory, below the 50-mark, since May.
While ECB President Mario Draghi tries to support the fragile Euro zone's economy by pumping as much as 1 trillion euros of liquidity, Denmark stands ready to defend its 30-year old currency regime. Should ECB stimulus measures debase the Euro, Deputy Governor Per Callesen says there is no limit on how far Denmark, where the benchmark interest rate is already below zero, is ready to go to defend the Krone's peg to Europe's single currency.
Both European and American news to drive EUR/USD pair on Friday
On the last day of the current trading week, the Euro crosses will be considerably influenced by internal data from the single currency bloc. Eurostat will publish data on employment change and industrial production in the Eurozone. Along with that, US statistical authorities are due to release the producer price index and consumer sentiment index from the University of Michigan.EUR/USD crossed long-term downtrend
The long-term outlook for the EUR/USD remains bearish, even though the currency pair has recently breached the long-term downtrend line, which used to be a considerable resistance for the cross. Moreover, it has reached the December high at 1.2494. However, any negative impetus will push the cross down below this important level, with a long-term goal located at 1.2246 (2014 low) for the time being. From the upside, the next major supply zone is placed around the 1.26 level (23.6% Fibo, Bollinger band, 55-day SMA).Daily chart
EUR/USD currency pair continued to show a strong upward development during the trading session back on Wednesday, as it managed to rise through the weekly R1 and monthly PP to reach the December's high at 1.2494. Taking into account the present neutrality of daily technical indicators, a sharp consolidation of the pair is unlikely, while in the medium-term the bearish outlook still remains in place.
Hourly chart