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15 Mar 2013
Forex Flash: US industrial production in focus as economy outperforms – UBS
FXstreet.com (Barcelona) - On the data front, US industrial production numbers are due today and we expect a 0.6% rebound after January's slight decline. According to Research Analysts Gareth Berry and Geoffrey Yu at UBS, “Further expansion would only confirm that activity in the US is outperforming.”
Based on the current levels, US output is only 2% from 2008 highs, but the comparable figure for the Eurozone is still a massive 13%, and trends are actually going in the wrong direction for the currency union. Moreover, “the EUR/USD so far is still failing to respond adequately to data prints in favor of the dollar, and while this may evolve in time, we prefer upside data prints via being long USD/CHF.” they add.
Based on the current levels, US output is only 2% from 2008 highs, but the comparable figure for the Eurozone is still a massive 13%, and trends are actually going in the wrong direction for the currency union. Moreover, “the EUR/USD so far is still failing to respond adequately to data prints in favor of the dollar, and while this may evolve in time, we prefer upside data prints via being long USD/CHF.” they add.