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Forex: EUR/USD in new low after EMU PPI

The EUR/USD has just printed a new low on the release of the EMU Producer Price Index data. In December, EMU PPI dropped -0.2% as expected, the same pace as in November. Although market consensus was pointing to an annualized rise from 2.1% to 2.2%, data stayed unchanged.

EMU Sentix Investor Confidence improved from -7 to -3.9 in February, still not as high as the expected -3. Spain added 132.10K unemployed in January, not as much as the 150K expected, but still a very negative change, taking in account December's -59.1K drop. Soon, the EMU PPI data for January will be published. At 12:00 GMT, German Chancelor Merkel will be meeting Spain's PM Rajoy.

“Psychological 1.3600 support, also Fib 38.2% of 1.3413/1.3710 rally / hourly 55 day EMA and post data low at 1.3585, are in near-term focus, as hourly structure remains weak, with break lower to signal stronger correction towards 1.3540/00”, wrote Windsor Brokers analyst Slobodan Drvenica, expecting then a move back to 1.3700 and a rise to 1.3800.

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