Flash: EUR rally to be short lived - UBS

FXstreet.com (Córdoba) - Industrial production (IP) for July disappointed in Italy and in the Eurozone aggregate, just as in Germany recently. Furthermore, IP was revised significantly lower back to March. “As such, the upward trend in IP since 1Q 2013 looks much more muted”, says the UBS analyst team, which commented on the data and the EUR.

Key Quotes

“This highlights the Eurozone's current weakness relative to other major industrial regions”.

“The Euro rose on Thursday despite the data due to a short squeeze”.

“We expect the EUR rally to be short lived as the ECB keeps its easing bias with such data”.