German industrial production orders increased to 4.8% for the month of February. Also Sentix Investor Confidence increased to 14.1 in April from 13.9 in March.
As a result we did see some strength in the euro yesterday, especially against the US dollar but gains were limited against the pound.
Data this morning from the UK threw in a surprise with both industrial and manufacturing output exceeding expectations rising to 2.7% and 3.8% respectively.
The data drove the pound higher initially and has continued to climb throughout the day, rising close to 2 ½ year highs against the US dollar and a 1 month high against the euro.
In the absence of any data the US dollar weakened today and today as markets remain cautious ahead of Fed Chair Janet Yellen’s monetary policy speech tomorrow evening. Yellen has recently talked in a dovish tone about the US economy and a result this has caused markets to be more weary as to if the Fed will continue to taper its current stimulus programme by US$10bln per month.
15.00pm – GBP – NIESR GDP Estimate (3M) (Mar): Previously at 0.8%