Wholesale Inflation Drives the EUR Northwards ahead of U.S Jobless Claims

It was a relatively busy Eurozone economic calendar this morning. Eurozone unemployment and wholesale inflation were in focus.

The Stats

In October, the Eurozone’s unemployment rate fell from 7.4% to 7.3%, which was in line with forecasts. The unemployment rate had stood at 8.4% in Oct-2020.

According to Eurostat,

• Compared with Oct-2020, the number of unemployed declined by 1.564m.

Wholesale inflation figures for the Eurozone drew greater interest today, however.

In October, the Eurozone’s annual wholesale rate of inflation accelerated from 16.1% to 21.9%. Month-on-month, industrial producer prices rose by 5.4%. Producer prices had risen by 2.8% in September.

According to Destatis,

Compared with Sep-2021:

• Industrial producer prices in the energy sector jumped by 16.8% and by 1.4% for intermediate goods.
• Prices for durable and non-durable goods rose by 0.5% and by 0.4% for capital goods.
• Prices in total industry excluding energy increased by just 0.8%.

By member state, Belgium (+11.2%) recorded the highest increase ,followed by Italy (+9.4%).

Compared with Oct-2020:

• Industrial producer prices in the energy sector rose by 62.5% and by 16.8% for intermediate goods.
• Prices in total industry excluding energy increased by 8.9%.

Market Impact

Ahead of today’s stats, the EUR had fallen to a pre-stat and current day low $1.13073 before finding support.

In response today’s stats, the EUR rose to a post-stat and current day high $1.13440 before easing back.

At the time of writing, the EUR was up by 0.14% to $1.13357.

Next Up

U.S jobless claims and ECB member Panetta. FOMC members Quarles, Barkin, and Bostic are also scheduled to speak later in the day.