German Constitutional Court Allows ESM Fund, EZ Industrial Production Rises 0.6%, Euro Attempts Fresh 4-Month Highs - 12.9.2012
The well anticipated decision of the German top Court to dismiss rejection requests regarding European Stability Mechanism pushed the Euro to fresh highs against the greenback. The German Court allowed the ratification of the euro zone’s permanent rescue fund on Wednesday, however it set as a condition that for German liabilities to exceed €190 billion to ESM, an approval of the lower house of parliament would be needed.
At the same time Euro zone Industrial Production rose unexpectedly by 0.6 per cent in July, up from a 0.6 per cent decrease in June according to Eurostat. Market participants were expecting the EZ Industrial Production to remain unchanged in monthly terms. On annual basis the Industrial Production dropped by 2.3 per cent in July compared to 2.1 per cent decrease in June. The single currency versus the greenback spiked to fresh 4-month highs to 1.2904, however it retreated back quickly considering a strong resistance around the 1.2900.