Key points:

• German wholesale prices down 2 in December.6%, 3 in November.6%。
• Weak supply and demand affect wholesale price trends。
• Next up is Germany's Q4 GDP data, Eurozone industrial output and trade data。

European markets focused early on the German economy on Monday。

Germany wholesale prices

German wholesale prices down 2 in December.6%, compared with 3 in November.6% slowed.。Economists predict German wholesale prices down 2.3%。Wholesale prices fell by 0 in December..6%, while November fell by 0.2%。Economists expect wholesale prices to fall 0 in December.3%。

According to Destatis,

Mineral oil products continue to affect wholesale prices down year-on-year, down 9 in December.8%。In addition, wholesale prices in the following areas also declined year-on-year: grain, unmanufactured tobacco, seeds and feed (-19.7%)。Chemical Products (-19.0%)。Metals and metal ores (-12.7%)。Scrap and waste products (-7.6%)。However, wholesale prices rose year-on-year in the following sectors: fruits, vegetables and potatoes (+ 13.9%)。Confectionery, pastry and pasta products (+ 8.9%)。Wholesale prices of beverages (+ 7.1%)。Tobacco (+ 5.8%)。The average wholesale price in 2023 decreased by 0.5%。EUR / USD reaction to wholesale prices in Germany

EUR / USD falls to 1 ahead of German industrial output data.Low of $09407, then rises to 1.High of $09674。

However, after the wholesale price report, EUR / USD rose to 1.$09653 high, then fell to 1.Low of $09609。

EUR / USD rose to 1 on Monday.$09649, up 0.15%。

German GDP data will confirm recession

Germany's Q4 2023 GDP figures are worth investors' attention later this morning。Recent economic indicators show that the German economy fell into recession in the fourth quarter of 2023。Retail sales and industrial production data raise concerns about German economy。

If the German economy shrinks more than expected, it could indicate a longer recession。More importantly, if the economy contracts more than expected, it could raise fears of a recession in the eurozone.。

Last Monday, the Sentix index showed Germany's economy was in recession, affecting the eurozone economy.。Deteriorating macroeconomic outlook could increase expectations of ECB rate cut in first half 2024。

Eurozone industrial output and trade data will send mixed signals

Investors must also consider subsequent Eurozone economic indicators。Eurozone industrial output and trade data set to catch investors' eyes。