The euro has ignored good data on the German economy, as most investors are worried about the political situation developing in Spain due to the likely separation of Catalonia and its independence.
According to the report of the statistics agency, the growth rates of German industrial production in August this year have increased significantly, being much better than economists' forecasts. This once again confirms the fact that Germany is the flagship of the European economy. Thus, industrial production in Germany grew by 2.6% in August compared with July, while economists forecast an increase of only 0.9%.
Today, the report of the Bank of France was also published, which indicates that the economy of the country in the third quarter of this year has maintained the pace seen in the first half of the year. Thus, the Bank of France predicts that GDP growth in the third quarter will be 0.5% compared to the second quarter. Such an assessment was made based on the September indicators of business activity, as well as against the background of growth in industrial production.
Despite the positive estimates for the growth forecast for the economies of the eurozone, the demand for the euro is rather weak, as there continues to be a threat of separation of Catalonia from Spain, which will significantly harm the European currency in case of such a scenario or worsening of the situation in this direction. A leading political expert noted that the Spanish government has the opportunity to turn to Article 155 of the Constitution to temporarily abolish the autonomy of Catalonia.
Today, with an unexpected statement made by the European Central Bank, which noted that the banks of the euro area do not need to attract new capital to safeguard against an unexpected rate hike.
Data on the excellent growth of the world economy today were ignored by traders, as they were not surprised by this information. According to the report, the leading OECD indicator in August this year was at the level of 100.1 points against 100.1 points in July. The report notes the acceleration of the growth of China, Italy and Brazil, which will be offset by the weak pace of the UK and Russia.
As for the current technical picture of the EURUSD pair, the volume of today's trading will remain very low until tomorrow in connection with the celebration of Columbus Day. Most likely, the trade will be conducted around the level of 1.1745-50, and after an unsuccessful attempt to consolidate above this range, buyers can retreat, which will lead to the return of the trading instrument to the level of average decline, located in the range of 1.1720.