The dollar rebounded broadly overnight after a sharp sell-off of more than 500 points in the Dow Jones. Some analysts suggested it was to stay away from big tech companies, but the decline was broad-based. Take profit may be a more likely factor after recent record highs, as traders and Fed policymakers await more data to determine how many rate cuts are needed this year.
The yen is struggling to extend its near-term gains after the release of core CPI data that came in slightly lower than expected. Although inflation has accelerated, it is not strong enough to warrant Bank Japan raising interest rates later this month. The government’s new forecast suggests that the yen will average around 158.8 against the dollar. This means that the USD/ JPY pair can be allowed to fluctuate around the 159 level without stirring. Intervention by the Japanese authorities .
Throughout the week, the Swiss franc remains the strongest performer, followed by the yen and the dollar. The New Zealand dollar remains the weakest, followed by the Australian dollar and the Canadian dollar. Euro and Pound Continue to struggle in the middle .
Technically, the S&P 500 is now pressing at the 5523.64 support level with the sharp decline of the past two days. A strong breakout there will confirm the short-term high having lost a forecast of 61.8% from 4103.78 to 5263.95 from 4953.56 at 5670.55. The deeper pullback can then be seen back to the 55D EMA now at 5403.75. In this bearish case, risk aversion may provide some support to the dollar. .
German Producer Price Index: Monthly Inflation Gauge
“German PPI m/m” stands for the German Producer Price Index month-over-month. This indicator is considered a measure of inflation at the level of prices paid by manufacturers and producers in Germany for the products and goods they offer.
The German PPI is calculated monthly by comparing the current prices of products produced in Germany with the previous month. If the index rises by a certain percentage, it means an increase in the prices of products paid by manufacturers or producers. Similarly, if the index falls, it indicates a decrease in product prices..
The German PPI is important because it reflects the production costs of companies and the level of inflation in the German economy. Inflation affects the competitiveness of firms and the costs borne by consumers. The change in the German producer price index could affect the monetary policy direction of the Bundesbank and the European Central Bank..
Detailed analysis of the indicator requires a review of actual data, forecasts and past changes of the index. Markets usually take into account the index reading against expectations to assess its impact on financial markets and currency..
PPI data can reflect changes in input costs along the supply chain. Different countries may have distinct supply chain dynamics, with differences in raw materials, energy and labor prices. These differences could contribute to divergent PPI trends across eurozone countries.
PPI data can provide insights into the competitiveness of producers in different countries. Lower PPI figures may indicate lower production costs and higher competitiveness in international markets. Comparing PPI data between Eurozone countries can help identify relative strengths and weaknesses in terms of price competitiveness.
German PPI comparison with other Eurozone countries
German producer price index (m/m) data can be compared with producer price index (PPI) data for other Eurozone countries to assess relative price trends and competitiveness within the Eurozone. Here are some key points to consider when comparing German PPI data with Eurozone countries:
Economic structure: Each country in the eurozone has its own economic structure, with varying degrees of specialization in different sectors. For example, Germany has a strong manufacturing sector, while other countries may focus more on services or agriculture. These structural differences can lead to differences in PPI trends.
Competitiveness: PPI data can provide insights into the competitiveness of producers in different countries. Lower PPI figures may indicate lower production costs and higher competitiveness in international markets. Comparing PPI data between Eurozone countries can help identify relative strengths and weaknesses in terms of price competitiveness.
Supply chain dynamics: PPI data can reflect changes in input costs along the supply chain. Different countries may have distinct supply chain dynamics, with differences in raw materials, energy, and labor prices. These differences could contribute to divergent PPI trends across eurozone countries.
Exchange Rate Effects: Exchange rate fluctuations can also affect PPI data comparisons. Exchange rate changes can affect the cost of imported inputs, which can affect PPI figures. In addition, exchange rate movements can affect the competitiveness of exports and affect demand for domestically produced goods.
When comparing PPI data between Eurozone countries, it is important to consider the time period, methodology and data sources used in the calculations. Official statistical agencies and economic research institutions typically provide reliable and comparable data on the PPI for analysis and comparison.
