Euro-Zone Producer Prices Continue to Decline

THE TAKEAWAY: Euro-zone producer prices continue to decline in December -> Annual inflation fell to 2% in January -> Euro trading unchanged

Euro-zone producer prices continued to decline for the second straight month in December. The PPI dropped 0.2% over the month, matching expectations for the decline in producer priced to continue at the same pace. Producer prices were 2.1% higher than December 2011, according to Eurostat.

In January, annual inflation fell to 2%. The ECB predicted that inflation would fall to its target 2% in 2013. Higher inflation discourages the ECB from cutting the interest rate in its next meeting, therefore lower prices are Euro negative. However, the ECB expects a recovery later in 2013 and therefore may not cut the interest rate even with the lower inflation.

The Euro did not react to the as expected producer prices. EURUSD dropped below 1.3600 earlier in today’s Forex trading, possibly due to scandals weighing on the confidence in the Spanish and Italian governments. The broken resistance line around 1.3500 may now provide support, and resistance could now be provided by the 14-month high recently set at 1.3710.

EURUSD Daily: February 4, 2013

Euro-Zone_Producer_Prices_Continue_to_Decline_body_eurusd_daily_chart.png, Euro-Zone Producer Prices Continue to Decline

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2500-0.0009-0.07%
    USDSGD=X
    1.7297+0.0015+0.09%
    EURSGD=X
    2.1038+0.0025+0.12%
    GBPSGD=X
    81.6367-0.0997-0.12%
    SGDJPY=X
    6.2036+0.0048+0.08%
    SGDHKD=X
    2.5900-0.0017-0.07%
    SGDMYR=X
    9,185.6816+42.6641+0.47%
    SGDIDR=X
    4.9756+0.0027+0.05%
    SGDCNY=X
    1.1717-0.0002-0.02%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,301.80-1.70-0.13%
    GCM14.CMX
    19.58-0.06-0.30%
    SIK14.CMX
    90.83-1.04-1.14%
    ^XAU
    3.03+0.01+0.30%
    HGK14.CMX
    104.13+0.37+0.36%
    CLK14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.65+0.04
    ^FVX
    2.64+0.01
    ^TNX
    3.45-0.01
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.116-0.001-0.85%
    B22.SI
    2.28+0.100+4.59%
    5ME.SI
    0.485+0.025+5.43%
    5GJ.SI
    0.1120.0000.00%
    A78.SI
    2.190.0000.00%
    JS8.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.17+0.010+6.25%
    T16.SI
    0.138+0.006+4.55%
    5BM.SI
    0.235+0.010+4.44%
    5G9.SI
    0.485+0.025+5.43%
    5GJ.SI
    2.28+0.100+4.59%
    5ME.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.255-0.015-5.56%
    5AM.SI
    0.58-0.030-4.92%
    544.SI
    0.275-0.005-1.79%
    M1Z.SI
    1.28-0.015-1.16%
    TI6.SI
    0.295-0.005-1.67%
    GG7.SI