EUR/USD: US Producer Price Index
The Euro rose strongly against the Greenback as the ECB indicated that it would start its €2.5T stimulus program withdrawal this year. Then, the US PPI data supported the pair’s appreciation, sending it higher above the 1.2020 level.
The US producer prices decreased for the first time in more than a year in December, due to falling services costs. The Labour Department stated that the country’s PPI slipped 0.1% in the reported month, putting the yearly producer price inflation increase to 2.6% after rising 3.1% in November. Despite the weak correlation between consumer and producer prices, they underline the challenge for the Federal Reserve to reach its 2% inflation goal.
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