THE TAKEAWAY: PPI numbers come in lower than expected -> high energy prices continue to affect producers -> Euro trades within tight range
Producer price inflation in the 17-nation Eurozone increased less than expected in March, representing the sixth consecutive monthly drop in the gauge. The month-on-month number came in at 0.6% vs. the 0.5% predicted by economists, while the yearly number was 3.3% versus the expected 3.4%. The numbers indicated that rising production costs continue to affect European producers.
European companies are expected to continue downsizing operations and layoffs and rising energy costs combine with low economic growth, creating a stagnant economic situation.
The Euro traded within a tight range against the US Dollar after selling off yesterday on a batch of unfortunate manufacturing data from across Europe.