THE TAKEAWAY: German unemployment rises 3,000 in December, better than expected -> Unemployment rate remains at 6.9% -> Euro trading steady
The amount of Germans out of work continued to rise for the ninth straight month in December, as the German unemployment rate stayed at a yearly high for the third straight month.. Three thousand more Germans found themselves unemployed in December (seasonally adjusted), which was better than an expected 10,000 rise in unemployment and the five thousand more people out of work in November.
The unemployment rate remained at 6.9% in December, as expected. There were a total of 2,942 Germans out of work, according to the Federal Statistical Office.
Last month, the Bundesbank cut its prediction for growth in 2012 to 0.7% and to 0.4% in 2013. The German economy has suffered because of the Euro debt crisis, and a pickup in the German economy would be a positive sign for the Euro.
The better than expected unemployment change did not have a significant effect on Euro trading. EURUSD fell back to 1.2150 in today’s forex trading, and the pair might see support by an upward tend line from November, currently at 1.3123. Resistance could be provided by the resistance level near 1.3158.
EURUSD Daily: January 3, 2013