On Friday afternoon, the EUR/USD pair is trading down after the release of macroeconomic reports on Germany.
The single European currency is weaker by the end of another November week. The current quote in the main currency pair is 1.0696. Sellers returned to the instrument after today’s publication of macro data from Germany.
The producer price index for October in Germany weakened more than expected. According to calculations by Destatis, the index dipped by 0.4% m/m (-2.3% y / y) due to another fall in energy costs. The current decline in the indicator is the most notable one in five years. Energy prices declined in October by 0.9% m/m.
Excluding energy figures, the producer price index last month would have weakened by only 0.3% m/m (-0.7% y/y). The indicator purified from volatility is needed to understand the overall global trend.
Thus, on the part of manufacturers, there is no upward effect on consumer inflation. Companies and producers do not see the point in it - as long as consumers are inactive, their demand will decline only because of the revision of the price tag on the goods.
The reactions of the euro/dollar to today’s report are not visible - there is no other news, information flow is calm, and the market is gradually preparing for the weekend.
RoboForex Analytical Department
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