The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Leap in German factory output indicates firm GDP surge in the third quarter
In August, German industrial output reported its biggest monthly ascend for more than six years, as Monday’s data disclosed.
As follows from this, the German economy is currently firing on all cylinders and it’s set for solid ascend in the third quarter. However, a question about the make up of the fresh government could generate uncertainty.
The combined output of construction, manufacturing as well as energy tacked on by 2.6% on the month having slumped by 0.1% in July, as data from the Economy Ministry revealed.
It turned to be the strongest monthly revenue since July 2011.It easily surpassed expectations in a Reuters survey for a 0.7% leap, confounding even the most optimistic forecast.
As for manufacturing output, it rallied by 3.2%, thus showing the greatest soar since March 2010. It’s because in August factories churned out more capital goods, intermediate goods as well as consumer goods.
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.