The main currency pair is in the “green zone” before the ECB meeting and ready for comments.
The EUR/USD pair is trading to the upside on Thursday afternoon, mostly near 1.12. Investors are not afraid of the result and comment that will follow the ECB meeting, which will be over in a couple of hours. It looks like the market is pretty sure that the regulator will say nothing new, so why bother?
According to the statistics published today, the PPI in the Eurozone in April reduced by 0.3% m/m against the predicted increase of 0.1% and 0.3% the month before. On a year-on-year basis, the indicator decreased by 4.4%. For the European Union, the PPI in April decreased by 4.2% y/y (-0.2% m/m).
On a year-on-year basis, the indicator continued falling, although the market hoped for stabilization at least. The major contribution into this decline was made by the energy sector, whereas in contrast durable goods prices increased a little bit.
It is interesting to note that there were negative signals in non-durable goods prices this time, both in the Eurozone and the European Union. It’s not the best signal, taking into account that the core inflation in Europe remains negative.
Today’s controversial statistics may well be taken into account by the European Central Bank. Its expectation relating to key macroeconomic parameters may be improved, but the inflation issue remains as critical as before.
RoboForex Analytical Department
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