Industrial production in the Eurozone may have risen by 0.4 per cent in February (beating economist expectations of a 0.2 per cent gain) but it was still down 3.1 per cent on the same period of 2012.
The Euro Exchange Rate was in the region of 1.3048 against the US Dollar as of 11:12 am
The result was more positive than January’s industrial production decline of 0.6 per cent but not strong enough to indicate that the currency bloc is significantly regaining momentum.
German industrial output strengthened by 0.9 per cent in February, not quite making up for the previous month’s decline of 1.1 per cent. Spanish output slid by 1.3 per cent.
After the report was published the Euro was little changed, having declined against its peers earlier as EU finance ministers gathered in Dublin for a two day meeting.
The common currency fell against all but one of its most traded rivals as finance ministers prepare to discuss contentious and concerning issues, including the Cypriot bailout, the situation in Slovenia and Germany’s resistance to planned banking reforms for the Eurozone.
As one chief currency strategist observed: ‘The resilience of the Euro has been surprising of late. We are starting to look back with a closer eye on all events European. The structural negatives are there wherever you go.’
Yesterday the Euro strengthened against the Yen to 131.12, the highest level recorded since the beginning of 2010. However, the common currency has since shed 0.5 per cent to trade in the region of 129.42.
The Euro is once more trading just below 85 pence against the British Pound, at 0.8495 pence per Euro.
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