THE TAKEAWAY: German unemployment falls by 7 thousand in July -> Bundesbank predicts a strong second quarter -> Euro rises closer to 1.33
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German unemployment unexpectedly fell by 7 thousand people in July, sending the Euro higher towards 1.3300.
The decline in unemployment beat expectations for unemployment to remain unchanged, but the decline was not as impressive as the revised 13 thousand drop in the amount of Germans looking for work seen in June. The German unemployment rate was reported at 6.8% in July according to the Federal Labor Agency, meeting expectations for the rate to remain at the ten-month low for the third consecutive month.
The German economy rose 0.1% in Q1, and the Bundesbank said in June that it expects strong economic growth in Q2, but warned it may slow in the summer. The German economy is the biggest in the Euro-zone, and signs of an improving German economy are Euro positive.
The Euro rose about twenty points against the US Dollar following the release, and EUR/USD is trading around 1.3282 at the time of this writing. The pair may continue to see resistance by a monthly high set yesterday at 1.3302, and the broken resistance near 1.3200 may now provide support.
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EURUSDDaily: July 31, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .