European session review: EUR under pressure despite reports that several European countries are planning to ease lockdown measures
16.04.2020, 12:39

European session review: EUR under pressure despite reports that several European countries are planning to ease lockdown measures

Time Country Event Period Previous value Forecast Actual
06:00 Germany CPI, m/m March 0.4% 0.1% 0.1%
06:00 Germany CPI, y/y March 1.7% 1.4% 1.4%
06:30 Switzerland Producer & Import Prices, y/y March -2.1% -2.7%
09:00 Eurozone Industrial production, (MoM) February 2.3% -0.2% -0.1%
09:00 Eurozone Industrial Production (YoY) February -1.7% -2% -1.9%
12:30 Canada Manufacturing Shipments (MoM) February -0.2% -0.1% 0.5%
12:30 U.S. Continuing Jobless Claims April 7446 14000 11976
12:30 U.S. Philadelphia Fed Manufacturing Survey April -12.7 -30 -56.6
12:30 U.S. Housing Starts March 1.564 1.3 1.216
12:30 U.S. Building Permits March 1.452 1.3 1.353
12:30 U.S. Initial Jobless Claims April 6615 5100 5245


EUR fell against most major currencies in the European session on Thursday as announcements of easing of restrictions in a number of European countries, including Germany, were not enough to outweigh the expectations for the economic fall-out. Markets do not believe that a half-trillion-euro rescue package, agreed by Eurozone's governments last week to help the countries through the COVID-19 outbreak, will be insufficient, especially for debt-laden Italy.

Market participants also received the Eurozone's industrial production figures for February (before COVID-19 lockdown measures).

Eurostat reported industrial production in the Eurozone edged down 0.1 percent m/m in February, following a 2.3 percent m/m gain in January. Economists had forecast a drop of 0.2 percent m/m. In y/y terms, industrial production declined 1.9 percent after a 1.7 percent drop in January. Economists had forecast a 2 percent decrease. Production of capital goods tumbled 3.6 percent y/y in February, while energy output slumped 2.2 percent y/y and intermediate goods output fell 0.8 percent y/y.

Meanwhile, the ECB's President Christine Lagarde acknowledged that incoming economic data, particularly recent survey results, had started to show "unprecedented falls", pointing to "a large contraction in output" in the Eurozone. She also noted that recent policy actions had helped to improve conditions for funds and reiterated that the ECB would explore all options and all contingencies to support the economy.

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