French Industrial Production for August rose unexpectedly increasing by 1.5% versus forecasts of -0.2%. The July figure was revised upward as well to 1% while manufacturing expanded by 1.8%. The dataset continued its pattern of volatility as it has consistently either exceeded or missed analysts expectations for the past 24 months.
Nevertheless the upward surprise was a breath of good news for euro longs on a night absent of any significant economic data helping to lift the EURUSD to 1.2875 after the pair spent a choppy session in Asia selling off to 1.2835 on reputed EUR/AUD flows. The pair however remains under pressure as the issues with Spain Greece and other periphery economies remain unresolved.
With no other economic releases on the docket, the currency markets are likely to continue to chop amidst a dearth of any new geo-political news. For now the EURUSD appears to have found support near the 1.2850 level with BIS reportedly buying near that barrier but if risk aversion flows accelerate into the North American session it may revisit those lows as the day proceeds.