Release Explanation: Measures of the total value of the output from mines, industrial factories and utilities is in the Industrial read. High production numbers usually denote an economy in an upward trend, or growth period. These reports are reactive to change and are well respected.

Release Explanation: Measures of the total value of the output from mines, industrial factories and utilities is in the Industrial read. High production numbers usually denote an economy in an upward trend, or growth period. These reports are reactive to change and are well respected.

Trade Desk Thoughts: Industrial production fell, in December, in the Euro-area by 2.6%, more than the market had expected. Compared with one year ago, industrial production is down by 12.0%, from -7.7% in November, reaching 2004 levels.

Monthly data shows that energy production rose by 1.1%, but is down by 3.3% from one year ago; intermediate goods decreased 5.7% and are off by 20.3% year-over-year; non-durable consumer goods fell 0.9% from one month earlier, while durable consumer goods tumbled 2.4% in December from November, and are down by 14.5% from December 2007.

On a monthly basis, industrial production is down in all of the fifteen euro-area countries in December. Compared with one year ago, industrial production took a strong hit both in the Euro-area and in the Euro-zone. Annual data shows that the largest decreases were registered in Estonia (-20.7%), Spain (-19.6%), Sweden (-18.4%), Romania and Slovenia (both -17.5%)

Forex Technical Reaction: The euro fell another 40 pips after the news release. The pair has fallen 60 pips tonight, testing TheLFB S1 (1.2810) and the low of the previous days of trading.