EUR
The only piece of note concerning the EUR yesterday was the industrial figures
from Germany. Industrial production increased by 0.7% MoM in July. The June
figures however were revised upwards to a decrease of 0.9% MoM. On
the year, production is up by 0.5%, showing that the German industry remains
solid but is still struggling to gain momentum. 

The mood in the German economy is good, but the hard data is still mixed.

EUR
The only piece of note concerning the EUR yesterday was the industrial figures
from Germany. Industrial production increased by 0.7% MoM in July. The June
figures however were revised upwards to a decrease of 0.9% MoM. On
the year, production is up by 0.5%, showing that the German industry remains
solid but is still struggling to gain momentum. 

The mood in the German economy is good, but the hard data is still mixed.
Confidence indicators like the IFO and the PMI have remained strong, despite
the Greek crisis and latest Chinese woes.

Looking ahead there is hope that the German industry could shift up one
gear, benefiting from the well-known tailwinds. Low energy prices, low interest
rates, a weak euro and strong domestic demand should support industrial production
in the near term.

GBP
Prime Minister David Cameron suffered an embarrassing defeat in parliament on
Monday over how the referendum regarding leaving the European Union will be
conducted. In Monday’s vote euro-skeptics teamed up with MPs from the main
opposition Labour party and the Scottish National Party to vote down the move,
which they saw as a key test of the government’s willingness to address their
concerns.

It also emerged during the debate that ministers will now have to give four
months’ notice of the date of the referendum, giving both sides time to
campaign, rather than calling a snap vote. The bill now goes to the House
of Lords, the upper legislative chamber of parliament, for further debate
before it can become law.

 

Key
Announcements
10:00 – EUR:  Eurozone GDP – expected to remain unchanged at
 1.2% YoY.