Popular Forecasts for EUR/USD on May 7, 2024 Eurozone producer price index rose from -8.5% to -7.8%, but had no impact on the situation, and the single currency was stable throughout the day. Of course, we could say that this report is not critical, but that would be wrong. After all, we are talking about the component of inflation, which is an indicator of future dynamics. Given that the dollar remains overbought, even hints of rising inflation in Europe should support the euro. The market stability is partly due to revisions to previous reports. The rate of decline increased from -8.3% to -8.5%. This negates the effect of the slowdown. Today, the euro will have another opportunity to strengthen. This time it will be a retail sales report. The decline is expected to slow from -0.7% to -0.3%. As a result, consumer activity in Europe appears to be increasing, along with signs of rising inflation. This is a good thing from a financial markets perspective.