After German Factory Orders data yesterday surprised positively, Industrial Production data for December slumped a larger-than-expected 2.4% on weaker auto output, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

German Industrial Output slides in December

"November’s output gain was revised down slightly to 1.3%. German Trade data reflected a larger than expected surplus (EUR20.7bn) as exports jumped 2.9% in the month. The data had little impact on the EUR which is little changed intraday." 

"The EUR is little changed and is just about holding on to its 40-day MA support at 1.0376. Significant EUR gains from the early week low and net gains on the week are positive but residual bearish momentum here remains strong and there are still significant net bearish price signals on the longer run chart that suggest the EUR must push through 1.0535 to show some technical strength."