In the US on Friday, the main focus was on the Nonfarm payrolls. These came in significantly above expectations with the number increasing from 129,000 in Jan to 175,000 in February. However, unexpectedly the unemployment rate did tick up to 6.7%.
The trade balance in the US also increased slightly from the previous month, coming at –US$39.1B from –US$38.98 the previous month, highlighting a growing gap in the demand for US exports compared with how the US imports.
Industrial Production in Germany improved from the previous month, far exceeding the 0.1% growth there was in January to come out at 0.8%. This shows a significant pickup in industrial activity and as Germany is one of the largest producers in Europe, this bodes well for the Eurozone as a whole.
This data capped a good week for the euro, with it strengthening significantly against its peers throughout the course of the week.
There is limited economic data out today.
Industrial output data for France, Italy and Spain has already been released and has been mixed so far. Both Spain and France have missed expectations, however, Italy has shown an improvement from the previous month.
In the Eurozone the Sentix investor confidence report has shown an improvement in March from February, giving the euro further support following last week’s broad strength.