Euro slips after German PPI report
The euro is trading at $1.3609, and has been slipping back towards the $1.36 mark after Germany reported a drop of 0.2% in the latest PPI report for May.
The decline in materials used in the manufacturing sector is proof that demand is softening in the strongest economy in the eurozone.
The interest rate cut that was introduced by the European Central Bank at the beginning of the month will take a number of months to trickle down to the economy, but I suspect additional monetary easing will be required by the ECB.
There is little in the way of economic news today other than the eurozone consumer confidence report at 3pm. The April reading was -7 and the consensus is for -6.
If the euro can hold on to the $1.36 level, the next target could be the $1.3640 mark. To the downside, it could move towards the 200-hour moving average of $1.3560.