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That's the right attitude

Hello, can someone please explain to me how the basic producer price index affects the movement of the EUR/USD pair?

The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output, reflecting inflation or deflation at the wholesale level. It is an important economic indicator that provides insight into inflationary trends before they reach consumers.
How the PPI affects the EUR/USD currency pair relates to its impact on inflation expectations, monetary policy, and ultimately the relative strength of the Euro (EUR) versus the US Dollar (USD):

1. The PPI indicates inflation pressures in the economy from the standpoint of producers. Rising PPI suggests increasing input costs and inflationary pressures, which may lead central banks like the ECB or the Federal Reserve to consider tightening monetary policy by raising interest rates.
2. If US PPI rises sharply, it signals stronger inflation in the US economy. The Federal Reserve might respond by raising interest rates to curb inflation, which tends to strengthen the USD against other currencies, including the EUR. Conversely, lower or decelerating US PPI can weaken the USD.
3. Similarly, changes in producer prices in the Eurozone affect the ECB’s monetary policy stance. For example, increasing producer prices in the Eurozone might prompt the ECB to tighten monetary policy, strengthening the EUR.
4. Since producer prices also affect the costs of goods and services, and are influenced by the EUR/USD exchange rate itself (because commodity prices are often denominated in USD), fluctuations in PPI data can cause volatility in the EUR/USD pair.
5. Market participants closely watch the US PPI releases for clues on inflation and Fed policy. Stronger-than-expected US PPI data generally supports the USD and puts downward pressure on EUR/USD, while softer data tends to weaken the USD and allow EUR/USD to rise.
6. In summary, the basic Producer Price Index affects EUR/USD mainly by signaling inflation trends and influencing expectations of monetary policy changes by the ECB and Fed. Stronger US PPI tends to strengthen the USD and weaken EUR/USD, while weaker US PPI tends to have the opposite effect. Eurozone PPI changes can also influence EUR/USD but typically to a lesser degree

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Go on the tab > calendar and tap on the little file at the release you are interested to learn more.

Thank you legend

Not just 0.10% or 0.20% above forecasts! That's 0.70%. bearish for eu.

This is where to focus!

H4 opening lvl 1.1664

closing below 1630 will open doors for 1590

Price bounced off last week's closing level 1.1641

Hi rehmat!

I am waiting for a breakout either below or above until then no trades

how are you brother

I'm trying my best! You!

Below the trendline is targeting 1.1622 or 1.1600.

same here brother....fighting with mysled and the world

Its good as long it keeps you busy.

yup brother

The EUR/USD pair has seen significant movement today, with a key driver being the hotter-than-expected US Producer Price Index (PPI) report. US producer prices jumped 0.9% in July, well above the 0.2% forecast, which has led to a tempering of market expectations for a Fed rate cut in September. This has provided a boost to the US Dollar, putting pressure on EUR/USD.

From a technical perspective, the pair managed to reach the 1.1714 but is now facing resistance in the 1.1666/70 level. Key support is identified around the 1.1590-1.1600 range, which could form a trading zone for the pair.

It was great sharing my views with all have a nice rest of the day!

We had a breakout but the volume is very low so I am still waiting for the market to react in this zone