The Euro is picking up from six-week lows around 0.8725 on Monday, but remains capped below a previous support area at 0.8750 so far. A mild improvement in Eurozone investors’ sentiment and the unexpected increase in German Industrial Production have failed to provide any significant support to the Euro.
The Eurozone Sentix Investors’ Sentiment Index picked up to -6.2 in December from -7.4 in November, according to figures released earlier on Monday. The Current Situation Index has risen to -16.5 from -17.5 in the previous month, while the Economic Expectations Index has shown the largest improvement to a reading of 4.8, from 3.3 in November.
Earlier in the day, data from Destatis revealed that German Industrial Production grew 1.8% in October, against the market consensus, which had anticipated a 0.4% contraction, and following a 1.1% rise in September.
Also on Monday, ECB Executive Board member Isabel Schnabel affirmed that she feels comfortable with investors’ bets that the central bank’s next move will be a rate hike, as, in her opinion, the economy “has been much more resilient than could have been expected.” Later on, ECB member and Bank of Finland Governor Olli Rehn took a more neutral stance, calling for a “meeting by meeting” approach.
In the UK, the calendar has been void during the London session, which keeps the GBP on a mildly positive trend against most of its peers. Investors’ relief triggered by the UK’s tax-rising budget is still in play, ahead of the speeches of Bank of England officials Alan Taylor and Clare Lombardelli, due later on the day.
Source: https://www.fxstreet.com/news/eur-gbp-remains-capped-below-08750-despite-positive-eurozone-data-202512081110
