Data released by Eurostat showed that the Producer Price Index (PPI) in the Eurozone declined by 0.2% in August, compared to expectations of no change.

The fall in producer prices signals weaker industrial demand, intensifying concerns over the region’s economic slowdown.

• EUR/USD dipped to 1.0815 before stabilizing near 1.0830.

• Industrial stocks in Germany and France also came under pressure.

• Analysts suggested that the European Central Bank (ECB) might need to keep monetary stimulus in place if this trend continues.

Markets are now turning their attention to upcoming consumer inflation data for clearer signals on the ECB’s next steps.