Release Explanation: The release measures the change in the price of goods purchased by importers.
Trade Desk Thoughts: In December, German import prices tumbled 4.0%, subsequent to the record pace it has risen in the first part of 2008. The released number of -4.0% is larger than analysts expectations of -2.9%. From December 2007, the index is down 5.1%, pointing to deflation. Earlier this year, in August 2008, the index was standing at a record 9.3% year over year.
Forex Technical Reaction: The euro had a weak reaction to the news release. The pair is now trading just under the Asian open price, despite testing the 1.3250 area earlier.