- US industrial output falls 0.1% in March
- Annual growth slows to the lowest in 18 months
- EURUSD locked at 1.13, needs a trigger to move forward
US industry slows down
The US industrial output confirmed a slowdown in the US economy by contracting in March by 0.1% m/m after an increase of 0.1% in February and below an expected increase of 0.2%. This also means that output contracted quite heavily in Q1 as February was the sole month of increase. As a result the annual output growth is at the 18-months low of 2.8%. Manufacturing growth is even weaker at 1% y/y (weakest in more than 2 years) and while base effects can help y/y growth recover in Q2, the second half of this year could see manufacturing output actually contracting in y/y terms.
US industry is on a clear slowing path. Source: Macrobond, XTB Research
Market reaction limited, EURUSD needs an impulse
US indices remain close to all-time highs as traders could be already used to the fact that markets have been ignoring weak economic data for a long while now. There’s no major reaction on the EURUSD either. However in this case the situation is serious – the rally (underpinned by a double bottom formation) stalled at an upper limit of a wedge pattern and bulls need to act quickly or risk being thrown back into the wedge.
EURUSD rally has stalled at the first resistance. Will the pair stay within the wedge? Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
