Forex News: German Producer Prices Drop Slightly in November
THE TAKEAWAY: German producer prices fall 0.1% in November, slightly less than expected -> Inflation slightly higher than producer prices change -> Euro trading steady
German producer prices dropped for the first time in five months according to the German Federal Statistical Office. Prices for producers dropped 0.1% in November, higher than the expected 0.2% drop in prices and lower than October’s unchanged producer prices. Producer prices were 1.4% higher than November 2011.
Import prices were unchanged in October according to the Federal Statistical Office. German inflation was reported at 1.9% in November, higher than the annual change in producer prices. The European Central Bank will consider Euro-zone inflation before deciding whether or not to cut interest rate in its next meeting.
The Euro did not significantly react in forex markets to the drop in producer prices. The Euro is currently trading around 1.3220, and support could come in around a previous high at 1.3158. Resistance could come in at a current 8-month high at 1.3284.
EURUSD Daily: December 20, 2012
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.