German Producer Prices as Expected; Survey Shows Consumer Confidence Improvement
THE TAKEAWAY: German producer prices fall -> GfK consumer confidence improvement expected to continue -> Euro bullish on the day as currencies consolidate
Data from Germany released today showed German producer prices continuing their downward trajectory, in line with economists’ predictions which show a decrease in growth and exports into the beginning of 2012. German producer prices rose by 0.1% on the month, a rise identical to the median prediction by a team of economists. The yearly rise was 5.2%, also in accordance with expectations.
Meanwhile, the German GfK Survey reported a rise in consumer confidence, which will remain at 5.6 this month after a 3-month improvement stretch. Economists had predicted a drop to 5.5. The Nuremberg-based market research company citing falling unemployment in Europe’s largest economy as a factor in boosting the economic outlook.
The Euro continues to consolidate its losses over the past few days, and going into the holiday season we could expected some heightened volatility as trading remains at half-mast over the coming weeks.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.