The Eurozone has released its producer price index (PPI) data, significantly influencing the movement of EURUSD during trading on Wednesday (March 5, 2025).
For the month of January, the PPI has shown a growth of 1.8% year-on-year (YoY), surpassing the forecast of 1.3% YoY reported by Trading Central and a previous month figure of just 0.1% YoY.
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Following the release, the EURUSD demonstrated considerable volatility, hovering near a three-month peak of 1.07222. Compared to Tuesday’s trading close, the EURUSD has surged by 990 points (99 pips), continuing a sharp upward trend of over 135 pips from the previous day.
The release of PPI data exceeding the forecast may inject additional positive sentiment into the EURUSD. This currency pair has seen a significant uptick since Tuesday in response to the reform proposals made by the CDU/CSU coalition, which triumphed in the elections held on Sunday (February 23, 2025).
On Tuesday, the coalition unveiled plans to allocate €500 billion for infrastructure development. Moreover, they also intend to reform the current fiscal deficit rules, which stand at 0.35% of the Gross Domestic Product (GDP), increasing it to over 1%.
Such measures could lead to enhanced economic growth in Germany, further propelling the EURUSD upward.
