www.TheLFB-Forex.com 

U.S. Industrial Production Actual -0.5%, Expected -0.5%, Previous -1.5% 
 
U.S. Capacity Utilization Actual 69.1%, Expected 68.9%, Previous 69.3% 
 
Release Explanation: The total value of the output from mines, industrial factories and utilities is in the Industrial read. The value of manufactured goods is in the Manufacturing read. The Shipment number covers the amount sent abroad. Capacity Utilization cover at what rate Factories are running at compared to the maximum. High production numbers usually denote an economy in an upwards trend, or growth period. These reports are reactive to change and are well respected. GDP will normally be directly affected by the Industrial Production component. Durable Goods and Retail Sales will normally be affected by the Manufacturing aspect of the report. A currency will eventually be affected by these numbers, but only once they filter through to the main releases.
 
Trade Desk Thoughts:Industrial Production decreased 0.5% in April after having fallen 1.7% in March. Production in manufacturing declined 0.3% in April and was 16% below its recent peak in December 2007. The decreases in manufacturing in April remained broadly based across industries. Out side of manufacturing, the output of mines fell 3.2%, as oil and gas field drilling and support activities continued to drop. 
 
The capacity utilization rate for total industry fell further in April to 69.1%, a low over the history of this series, which began in 1967.
 
Forex Technical Reaction: There was very little reaction to the release as the market is absorbing a lot of important releases this morning. The dollar is trading mixed against the other major currencies. U.S. stock markets have opened slightly lower.