The EUR/USD revealed muted response on a slighter-than-expected increase in the US producer prices. However, in the next couple of hours the Euro depreciated significantly against the Greenback, falling to the weakest level in a week below the 1.1900 mark.
The Labour Department revealed that the US producer prices accelerated growth at the strongest pace in four months amid an increase in gasoline prices. The report showed that the country’s PPI for final demand rose 0.2% in August, slightly below expectations for a 0.3% gain. Wednesday’s data were not quite as broad-based or strong as the Fed would like to consider to support an increase in core consumer prices to the Central Banks 2% target.
