NEW YORK (Forex News Now) – The Federal Reserve is set on Monday to release a key report on U.S. industrial production in September, in one of the day’s major realtime FX news events.
The Fed is expected to say that U.S. factory output increased 0.3 percent during the month, according to two online FX trading news outlets, after an increase of 0.2 percent in August.
The central bank is scheduled to publish the report at 1:15 P.M. GMT; as such, the data are likely to dominate European afternoon currency market trading. However, the publication of the report will coincide that of data on capacity utilization in the United States, which also may impact the market.
According to EUR USD analysis, if the report shows a greater-than-expected increase, EUR/USD could be pushed down toward support the low of Oct. 12, 1.1.3775.
But if the report shows slighter-than-forecast growth, or even a decline in production, the currency pair could be lifted toward resistance around Friday’s 8-month high, 1.4158.
Of course, the first scenario could, in fact, boost FX traders’ risk appetite, which would be likely actually to benefit the euro against the dollar.