Euro Reaction Muted as Eurozone Producer Prices Fall Less than Expected
THE TAKEAWAY: Eurozone February producer prices above expectations -> Number eases from January to lowest reading in five months -> Euro reaction muted as market focus remains elsewhere.
Producer prices in the Eurozone rose 0.6% in February, below January’s revised 0.8% rise but above the 0.5% predicted rise, the EU stats office said in a release today. The yearly figure was 3.6% versus January’s 3.8% and the expected 3.5%.
The numbers represent the fifth consecutive monthly drop in PPI, as annual cost gains diminished across the Eurozone. European companies are under pressure to cut costs and keep prices under control as tough austerity measures roll out across the beleaguered Euro area.
The Euro’s reaction was limited as market focus remained on the other side of the Atlantic with the Fed’s FOMC minutes and other job data due later today.
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