• Industrial Production surprised to the upside in December.
• Manufacturing Production also came in above estimates.

Industrial Production (MoM) in the United States gained 0.1% in December, up from the 0.0% expected by markets. In November, United States Industrial Production (MoM) had advanced by a 0.2%. On a yearly basis, Industrial Production expanded by 1.0%.

In addition, Manufacturing Production increased by a monthly 0.1% in the same period and Capacity Utilization held steady at 78.6%.

What is the United States Industrial Production (MoM)?

The Industrial Production released by the Board of Governors of the Federal Reserve shows the volume of production of US industries such as factories and manufacturing. Up trend is regarded as inflationary which may anticipate interest rates to rise. If High industrial production growth comes out, this may generate a positive sentiment (or bullish) for the USD.

Market reaction

The Greenback receded some ground following the Industrial Production report, although the USD Index (DXY) remained near recent peaks in the 103.50-103.60 band.