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German PPI Actual -1.4%, Expected -0.2%, Previous -0.7%

Release Explanation: The Producer Price Index (PPI) measures the rate of inflation (i.e., the rate of price changes) experienced by manufacturers when purchasing goods and services. This includes the rate of inflation at the factory gate. “When manufacturers pay more for goods and services, they are likely to pass the higher prices to consumers,” TheLFB-Forex.com Trade Team said.

TheLFB-Forex.com Trade Desk Thoughts: In April, the German PPI was released at -1.4%, lower than market’s expectations. The year-over-year read dropped to the lowest level since 1987, from -0.5% in March to -2.7% in April. The largest upward pressure came from energy products in the prior months, but now this trend fully reversed, dragging the whole index lower.

Forex Technical Reaction: The release failed to spark any reaction in the currency market. Currently, the euro is trading near the low of the day, some 50 pips below the Tuesday’s open

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