Forexpros – The Euro traded lower against the U.S. Dollar Friday as shrinking Italian production and lower German exports depressed the single currency.
EUR/USD was trading at 1.2457, down 0.82%, after striking a high of 1.2575 earlier in the session
The pair was likely to find support at 1.2386, Monday’s low, and resistance at 1.2625, Thursday’s high.
Sparking the bearish euro sentiment, German exports slipped 1.7% in April beating analyst’s expectations of a 0.7% decline.
In addition, Italian output fell 1.9% from a revised 0.6% gain in March. Year over year, production plunged 9.2% supporting global slowdown fears.
China’s industrial output is expected to have grown 10.8%, per economists projections prior to the report, This would mark the slowest growth in year to date output since November 2009.
Chinese consumer prices are projected to have risen by 3.2% in May, missing the government’s 2012 target of 4%.
Meanwhile, Producer price inflation input in the U.K. fell more-than-expected last month, official data showed on Friday.
In a report, National Statistics said that U.K. PPI input fell to a seasonally adjusted -2.5%, from -1.4% in the preceding month whose figure was revised up from -1.5%.
Analysts had expected U.K. PPI input to fall -1.3% last month.
The single currency was down against the British Pound and the Japanese Yen, with EUR/GBP giving back 0.19% to hit 0.8074 and EUR/JPY falling 1.31% to hit 98.71.
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