Pickup in German Wholesale Inflation Fails to Deliver EUR Support

It was a quiet day on the Eurozone economic calendar. German wholesale inflation was in focus going into the European open.

In November, selling prices in wholesale trade rose by 16.6% compared with November 2020.

According to Destatis,

• There has not been a higher annual rate of change since 1962, when wholesale price indices calculations began.
• In October 2021 and September 2021, the annual rates had been 15.2% and 13.2% respectively.
• The high rates of change for wholesale prices in annual comparison came from increased prices for raw materials and intermediate products.
• Prices for mineral oil products were up 62.4% year-on-year, which was the largest contributor.
• Month-on-month, the index rose by 1.3%.

Market Impact

Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.13195 before falling to sub-$1.13 levels.

In response today’s stats, the EUR fell to a post-stat low and current day low $1.12839 before rising to a post-stat high $1.12882.

At the time of writing, the EUR was down by 0.25% to $1.12878.

Next Up

There are no material stats due out of the U.S later today. The lack of stats will leave the markets to consider the latest COVID-19 numbers due out from the Eurozone later today