|06:00||Germany||Industrial Production s.a. (MoM)||March||2.1%||-1.3%||-3.4%|
EUR traded mixed against its major rivals in the European session on Monday as investors weighed disappointing data against hawkish remarks from the European Central Bank’s Governing Council member Klaas Knot.
The single European currency firmed versus USD, GBP, and JPY but weakened versus AUD, CAD, and CHF.
Destatis reported industrial production in Germany, the Eurozone’s largest economy, plunged 3.4% m/m in March, following an upwardly revised 2.1% m/m jump (from +2.0% m/m) in February. That marked the steepest fall in German industrial output since March 2022. Economists had forecast a 1.3% m/m decline. On a y/y basis, German industrial production rose by 1.8%.
The latest data, combined with the earlier released reports revealing sharp decreases in the country’s retail sales and exports, heightened the risk that the first quarter GDP growth figures might be revised downwardly to show the German economy fell into a recession.
ECB’s policymaker Knot stated on Sunday that he thinks that the ECB needs to continue hiking its interest rates as core inflation in the euro area “is still too high.”