German Retail Sales hit a 9 month high rising by 0.6% versus 0.1% eyed helping the euro to recover from its lows in early European opening trade. On a year over year basis however, retail Sales declined by -3.8%.
The details of the report showed that food, drink and tobacco sales were down by -5.9% while non-food sales declined by -2.2% suggesting that some of the spending may taking place on items not included in the report.
Meanwhile German unemployment missed its mark printing flat at 0K versus expectations of -5K reduction in rolls. The unemployment rate improved to 6.7% from 6.8% eyed. The data shows that labor demand continues to slow down in Europe’s largest economy as it fails to generate jobs for the second month in a row.
The EUR/USD remained steady in the aftermath of the release at 1.2400 level as it tried to stage a small recovery after setting fresh two year lows in yesterday’s trade. The unit remains grossly oversold and may be due for further short covering, but sentiment is highly negative and if US economic data disappoints risk aversion flows may push the unit lower once again.