German PPI
Earlier during the London session, the German Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The market was expecting an increase of 0.2% in May 2015, compared to the preceding month. However, outcome was on the lower side, as the German PPI registered no change. When we look at the yearly change, then the PPI declined 1.3% in May 2015 from the corresponding month of the preceding year.
The report stated that “energy prices decreased by 4.1% compared with May 2014, prices of consumer non-durable goods by 1.5% and prices of intermediate goods by 0.5%”. Overall, the report was disappointing, which increased bearish pressure on the EURUSD pair.
Euro Zone Current Account
The Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of the Euro-Zone was released by European Central Bank. The forecast was of a €18.1B trade balance. However, the outcome was a bit higher, as the Euro Zone Current Account came in at €22.3B.
EURUSD Reaction
EURUSD enjoyed a decent run towards the upside during the past couple of days. However, today the pair came under bearish pressure and was seen trading lower. The EURUSD pair after trading as high as 1.1435 declined and fell by more than 100 pips to trade near 1.1300.
A break below the 1.1300 support area might ignite more losses in the short term towards 1.1260.
