Euro Holds Its Own after Industrial Production Numbers

Indications that the worst really is over for the eurozone continue to roll in, despite worries about Spain and Italy. The latest industrial production data supports the idea that the eurozone economy is strengthening, albeit modestly.

The latest industrial production numbers are in, and there has been an increase of 0.7 per cent in December. Eurostat reports that industrial production picked up in the eurozone, led by Germany. The December figure is an improvement over the 0.7 per cent fall in November.

Even with the improvement, though, there are still concerns that the eurozone economy will remain in recession. But, even so, there has been some improvement, and the data supports the idea that the 17-nation currency region is making some moves forward.

Euro is holding its own today in the currency markets, retaining gains against its major counterparts. Even with scandal in Spain, and political uncertainty in Italy, there are signs that the eurozone is moving on a path toward recovery. As long as eurozone leaders can continue to make progress as they move forward with plans for a stronger currency region, the euro should find support.

At 15:14 GMT EUR/USD is up to 1.3474 from the open at 1.3455. EUR/GBP is up to 0.8651 from the open at 0.8591. EUR/JPY is up to 126.0485 from the open at 125.7650.

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