Euro area industrial production likely to have grown strongly in May

The euro area industrial production growth is expected to have accelerated in May on a sequential basis from the prior month. The industrial production index has not delivered the three straight positive month-on-month growth rates since the second half of 2013. The industrial production report for the currency bloc is set to release next week.

Euro area’s industrial production index is largely reliant in what happens in Germany, the largest economy of the bloc. With the solid result for Germany’s industrial production index released on Friday that showed a strong rise of 1.2 percent sequentially and France also recording a strong rise of 1.9 percent, the expectation is for the euro area’s industrial production index to come in strong too in May, stated Wells Fargo in a research report.

According to consensus, the industrial production is expected to have grown strongly by 1 percent, with a clear risk to the upside given the solid showings for the largest economies of the region, noted Wells Fargo.

At 22:00 GMT the FxWirePro's Hourly Strength Index of euro was slightly bullish at 63.3739, while the FxWirePro's Hourly Strength Index US Dollar was neutral at -18.8352. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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