EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
The German bunds plunged Friday after the country’s industrial production for the month of February disappointed market expectations, coming in lower than the previous reading in January.
The German 10-year bond yields, which move inversely to its price, slid 1-1/2 basis points to 0.51 percent, the yield on 30-year note plunged 2 basis points to 1.17 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at -0.57 percent by 09:35GMT.
Following yesterday’s weak manufacturing orders and turnover data release, the sharp drop in German industrial output reported this morning was hardly a surprise. Total production fell by 1.6 percent m/m in February, the steepest drop in two and a half years. While energy production was up by 4.0 percent m/m after a decrease of a similar magnitude in January, other major components reported very significant dips, with manufacturing output notably falling for a third consecutive month, by 2.0 percent m/m.
Within the detail, production of capital goods was particularly disappointing, down 3.1 percent m/m, while production of consumer goods fell 1.5 percent m/m. In addition, construction output fell 2.2 percent m/m. With the January-February average level of total production down 0.1 percent from Q4, IP is highly likely to have slowed significantly from the 1.0 percent q/q pace seen in Q4.
And with German spending indicators for the first couple of months of the year also subdued, GDP growth in the largest euro area member state also appears to have slowed in Q1 from 0.6 percent q/q in Q4, Daiwa Capital Markets reported in its latest research.
Meanwhile, the German DAX slid nearly 1 percent to 12,206.46 by 09:40GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at 14.99 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
Lastly, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
