March 2023 German PPI inflation comes in at 7.5% YoY (forecast: 9.9%; previous: 15.8%)

In MoM terms, inflation dynamics fall by -2.6% against expectations of -0.6% and the previous level of -0.3%.

The EURUSD pair has been subject to increased volatility in recent minutes. First, the ECB’s Knot commented that the ECB still has a lot of work to do in terms of fighting inflation and an extension of the rate hike cycle into June and July is possible. On the other hand, the strong fall in PPI inflation somewhat sweetens the tone of the ECB banker’s comments.