U.S. industrial production rose 0.7% in March with capacity utilization at 79.2% U.S. industrial production rose 0.7% in March with capacity utilization at 79.2% (the highest since June 2008). The 0.6% February increase in production was revised higher to 1.2%, with January's -0.1% revised to -0.2%. Capacity utilization was bumped up to 78.8% in February from 78.4% previously. Manufacturing production rose 0.5% last month versus a 1.4% February rebound (was 0.9%). Motor vehicle and parts production fell 0.8%. Machinery production slid 0.3%. Computer and electronic production was up 1.0%. Utilities rebounded 1.0% after a revised 0.3% February drop (was -0.2%). Mining rose 1.5%. Data are much better than expected and are likely to pressure Treasury yields higher.
U.S. Industrial Production Preview U.S. Industrial Production Preview: March industrial production is expected to be up 0.4% (median 0.2%) following the 0.6% bounce in February. There is some upside risk to the report from the stronger hours worked data that was released in the March employment report.
N.Y. FX Outlook N.Y. FX Outlook: Better China GDP data helped risk appetite overnight, allowing USD-JPY to finally break over 102.00. EUR-USD edged higher as well, helped mainly by a surge in cable, which traded over 1.6800 following forecast-beating U.K. employment data. USD-CAD traded briefly over 1.1000 into this morning's BoC policy announcement, though has since returned to 1.0990. The U.S. calendar reveals March housing starts at 8:30 EDT, followed by March industrial production at 9:15 EDT. Weekly EIA petroleum inventory data is due at 10:30 EDT, while the Beige Book for the April 29-30 FOMC meeting is due at 14:00 EDT.