:::: Eurozone Producer Prices Softer than Expected in April

04 June 2012 07:30 GMT THE TAKEAWAY: Producer prices in the Euro area lower than expected in April -> Lower energy costs, deepening economic slump factor into drop -> Euro price action reserved after yesterday’s weakness
Euro-area producer price inflation slowed for the seventh month in a row in April, the EU stats office said today. The softer than expected number was thought to be caused by declining energy costs and a weakening economic situation, highlighted by European leaders’ inability to resolve the Greek issue.
Declining oil prices have eased the burden on beleaguered European manufacturers, sending producer prices down. Meanwhile, plummeting economic confidence and sky-high unemployment rates have raised speculation that the European Central Bank will ease rates at its next policy meeting.


The Euro traded quietly on Monday, well within the weekend range which saw weakness in risk correlated assets. EURUSD hit a fresh yearly low by 1.2286 over the weekend as investors continued to loose confidence in the single currency.

German Producer Prices Were Higher than Expected in April

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By David Schutz, 18 May 2012 05: 00 GMT 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 in early European trade as investors continued to sell the single currency.

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18 May 2012 05: 00 GMT

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>>> Lower Eurozone Producer Prices Fail to Stimulate Euro Volatility

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.