Tuesday, March 20, 2012

German PPI Could Put Pressure on the EURUSD

German month over month PPI was just released at 0.4% versus 0.5% expectations.  The drop in PPI follows previous reports last month of the country experiencing negative growth.  As such, after an imppresive late afternoon rally yesterday to a high of 1.3265, the EURUSD could be vulnerable to selling pressure if it breaks below its 1.3220 support (see chart)

For more on Germany’s PPI data from ForexPros
 German producer price inflation rose less-than-expected in February, official data showed on Tuesday. 
In a report, Destatis, Germany's statistics office said that its producer price index rose by a seasonally adjusted 0.4% in February, below expectations for a 0.5% gain. 
German PPI rose by 0.6% in January.  
Year-on-year, German producer price index rose at an annualized rate of 3.2% in February, in line with expectations, after advancing at an annualized rate of 3.4% in January.
Following the release of the data the euro was fractionally lower against the U.S. dollar, with EUR/USD easing down 0.02% to trade at 1.3237.  Read More

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