German Producer Prices Were Higher than Expected in April
THE TAKEAWAY: German producer prices above expected -> Focus remains on political developments -> Euro continues to suffer from risk-off environment
Producer prices climbed in April, coming in above expectations at 0.2% on the month versus 0.3% expected. The yearly number was 2.4%, versus 2.5% expected. Although the numbers were higher than economists had predicted, they represented a drop from March.
Market remained focused on political developments in the Eurozone, with political instability contributing to an intense bout of risk aversion and selling of currencies in favor of the US Dollar.
EURUSD approached the 2012 lows early in European trade as investors continued to sell the single currency.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.