EUR/USD was trading lower at the opening of the European session today. The German Producer Price Index (PPI) data report that was released at the beginning of the European session today is seen to have fallen to -0.5% in November compared to -0.1% in October 2023. This at the same time makes the annual PPI data reading still remain below the negative level which is -7.9%. Germany is one of the most important industrial sources for the economic movement in Europe. Economic weakness in Germany is seen to be able to have an impact and adverse effects on the European economic cycle in the future.
Geopolitical Crisis
Geopolitical factors that have occurred recently in favor of "Houthi" actions in the red sea have caused the cost of oil and gas in Europe to increase. At the beginning of the European session yesterday, the price and cost of natural gas in Europe was seen to have increased by 13%. Natural gas resources are one of the main sources in Europe in the generation of electricity.
Effect on Currency Trading
EUR/USD risks trading low around the 1.0200 – 1.1300 level in the long term.
