US Industrial Production rose by 1.6% MoM in October, according to data published by the US Federal Reserve on Tuesday. That was above expectations for a 0.7% MoM rise in production and fully unwound the 1.3% drop seen in production levels in September. "About half of the gain in October reflected a recovery from the effects of Hurricane Ida" said the Federal Reserve. 

"In October, capacity utilization for the industrial sector increased 1.2 percentage points to 76.4 percent" noted the Fed, before caveating that "it was still 3.2 percentage points below its long-run (1972–2020) average". 

Market Reaction

The US dollar has been picking up in recent trade following strong US retail sales data and hawkish remarks from FOMC member and 2022 voter James Bullard. FX markets have broadly ignored the latest Industrial Production figures, though the report does strengthen the case for the dollar to strengthen further on Tuesday. EUR/USD has recently slumped to year-to-date lows in the 1.1330s.