Forex News: Record Low German Unemployment Fails to Spark a Euro Rally
THE TAKEAWAY: German unemployment falls by 16,000 in January -> German Labor Agency said the crisis left few traces on the job market -> Euro trading unchanged
German unemployment in January fell by the most in twelve months, and the unemployment rate fell back to the lowest point since Germany joined the Euro. 16,000 German workers found employment in January, which was better than expectations for unemployment to rise by 8 thousand and even better than December’s revised 2 thousand person drop in unemployment. The unemployment rate fell to 6.8%, better than expectations for the rate to remain at 6.9%.
The German Labor Agency says the debt crisis has left few traces on the German job market. The improved job numbers contrast with the record drop in German retail sales for December that was also reported today. The German economy has been suffering from the effects of the Euro debt crisis. German growth slowed to 0.2% in the third quarter of 2012, and Euro investors are looking for signs of improved growth in the Euro-zone’s biggest economy.
However, the better than expected German unemployment had no lasting effect on Euro trading in Forex markets. EUR/USD is trading around 1.3550 at the time of this writing. The pair set a new 14-month high yesterday at 1.3587, and that level may continue to provide resistance. A broken resistance line at 1.3500 may now provide support.
EURUSD Daily: January 31, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
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