EUR/USD Signal Closed In Profit After The US PPI Report
Skerdian Meta • 1 min read
In our last update, we mentioned that the PPI (producer price index) report would do more harm to the USD if it was negative than good, had it been positive.
With this assumption in mind, we opened a buy forex signal in EUR/USD and we´re glad to see it closed in profit a while ago.
As we mentioned, the upward pressure on producer prices has a lesser effect on consumer inflation (CPI), while downward pressure tends to have a greater impact.
So, chances were that we would see EUR/USD climb higher if the PPI numbers missed expectations.
We took our chances and ended up with a handful of pips from our EUR/USD signal. The monthly PPI figures were sort of mixed – the headline PPI number beat expectation by a decimal point, while the core inflation number missed by a decimal point.
Yet, the Buck lost a few pips against the Euro and GBP. The negative impact on USD was bigger, but it was in our favor, so we cashed in.