German Wholesale Inflation Figures Provide Little EUR Comfort

Economic data was on the quieter side this morning, with German wholesale inflation figures in focus.

In July, Germany’s producer price index for industrial products rose by 1.9% versus a forecasted 0.8% increase. The index had risen by 1.3% in June.

According to Destatis,

• Compared with July 2020, the index was up by 10.4%.
• This was the highest increase compared to the corresponding month of the preceding year since January 1975.
• Increases in prices of intermediate products and energy drove the index northwards.
• Prices of intermediate goods increased 15.6% compared with July 2020 and by 2.3% month-on-month.
• Energy prices as a whole increased by 20.4% compared with July 2020 and by 4.1% compared with June 2021.

Market Impact

Ahead of today’s trade data, the EUR had fallen to a pre-stat and current day low $1.16747 before rising to a pre-stat and current day high $1.16892.

In response to today’s stats, the EUR rose to a post-stat high $1.16875 before falling to a post-stat low $1.16830.

At the time of writing, the EUR was up by 0.07% to $1.16831.

Next Up

With no major stats due out of the U.S later today, FOMC member chatter will need monitoring. FMOC member Kaplan is scheduled to speak this afternoon.