Germany has released its producer price index (PPI) data, which significantly influences the movement of EURUSD in trading on Monday (20/10/2025).
The PPI for September was reported at -0.1% month-on-month (MoM), which is an improvement over the forecast of -0.2% MoM according to Trading Central.
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On a year-on-year (YoY) basis, the PPI came in at -1.7% YoY, also better than the forecast of -1.9% YoY and a reduction from the previous month’s -2.2% YoY.
Despite these results, following the release, the EURUSD fell to a level around 1.16700.
The German PPI, which remains negative yet performs better than predicted, indicates that inflationary pressure (as measured by the consumer price index, CPI) may be weak moving forward, with the possibility of further decline.
Being the largest economy in Europe, Germany’s slowing CPI could have ripple effects on other countries. If the overall CPI in the eurozone decreases, it will increase the likelihood of the European Central Bank (ECB) cutting interest rates. This scenario creates negative sentiment towards the EURUSD.
