Producer prices in Germany fell 0.5% in February, following a 1.2% drop in the previous month, which lowered the annualized reading for price growth to 0.9% from a revised reading of 2.0% in January. Falling commodity prices paired with the economic downturn in the region have helped to lower input prices for the fifth consecutive month.
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EURUSD – Producer prices in Germany fell 0.5% in February, following a 1.2% drop in the previous month, which lowered the annualized reading for price growth to 0.9% from a revised reading of 2.0% in January. Falling commodity prices paired with the economic downturn in the region have helped to lower input prices for the fifth consecutive month. Meanwhile, a separate report showed the industrial production in Euro-Zone dropped another 3.5% in January after falling 2.7% in the previous month, which pushed the annual rate to a record low of -17.3% from a revised reading of -11.8% in December. The data foreshadows a deepening recession for the economy as global trade conditions deteriorate. As price pressures continue to alleviate and remains well below the 2% target held by the ECB, and as the central bank holds a dour outlook for growth and inflation, policy makers are likely to employ all of their available tools in an effort to soften the landing of the economy. Discuss the topic and your trade ideas in the EUR/USD Forum.
