The euro found some support during the latter part of the European session after dismal eurozone industrial production data (see economic calendar) missed on both YoY and MoM metrics. Yet another data point that reflects a slowing euro economy. Of recent, the euro area has been showing signs minimal improvement and despite some weaker US data, the euro area remains vulnerable to further downside. The pullback gained traction when US PPI missed forecasts and could have a knock-on influence on CPI going forward. PPI is often referred to as a leading indicator as lower producer prices tend to filter through to the price of goods – a net positive for the Fed and its current restrictive monetary policy stance.
