EUR/USD on EZ data and geopolitics from China to Italy - Scotiabank

Analysts at Scotiabank explained that France reported a 0.5% fall in industrial production in Nov, in line with expectations, but losses in manufacturing output were less than forecast at -1.0% (against -1.4% expected). 

Key Quotes:

"EUR/USD had been trading with an offered tone prior to the China headlines reaching a low around 1.1925 overnight before rallying nearly a big figure."

"The EUR is the natural beneficiary of any slowing in foreign central bank demand for US Treasuries and perhaps looks even more attractive to foreign investors following reports yesterday from Italy that both Forza Italia and the 5 Star Movement were behind Italy remaining in the Eurozone. Italy holds a general election in early March."