Strong Producer Price Index Data from Euro Zone

October 2, 2012 in Forex Fundamentals and News

Positive PMI Data from Euro Zone

The Produce Price Index (PPI) Data from Germany came much stronger than previous release. The year on year change in the German PPI came out as 2.7% while the previous released data was 1.6%. The release was better than the consensus also which were for 2.6%. Month on month change in German PPI was 0.9% while the previous change was 0.3% and the expectations were for 0.5%.

There are no important release from U.S. today. Tomorrow is German Bank holiday because of German Unity Day.

EUR/USD remained in the volatile sideways mode below yesterday’s high of 1.2938 and above yesterday’s 1.2876.

Tomorrow’s Economic Releases for EUR/USD:

Tomorrow’s important releases  from both Euro zone and U.S.A.

The main releases are as follows:

A) Euro:

1) Retail Sales data

2) Services PMI

B) U.S. Dollar

1) ADM Employment Change

2) ISM Non Manufacturing PMI

What to Expect from EUR/USD:

 

1.3000 level’s psychological push and overall uncertainties of Euro zone are at one side and the momentum of recent strong upward movement because of some optimism about the debt rescue plans are on the other side.

EUR/USD Outlook

As far as short-term move is concerned, a break of either of the mentioned low or high of the current range is required to expect any directional move. Any upward move should again find resistance below 1.3000 and a down side break should take EUR/USD towards 1.2757/1.2766 support zone.

1 response to Strong Producer Price Index Data from Euro Zone

  1. Regards for helping out, good information.