European Confidence Slips As German Labor Market Continues To Shed Jobs
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• Euro tumbles amid flight to havens testifies - Financial Times
• Greece Risks Debt-Rating Downgrade Within Month on Struggle to Trim Budget – Bloomberg
• Euro Weakens, Greek Bonds Decline on Downgrade Concern; U.S. Futures Drop- Bloomberg
EUR/USD – The German unemployment rate rose to 8.2% from a revised 8.1% in February as the economy lost another 7,000 jobs. Despite the continued jobless rate results were positive as economist were expecting an increase of 16,000 in the unemployed and prior to the revision the unemployment rate was reported at 8.2% for the month prior. Weak labor markets and rising budget deficits led to a an unexpected decline in European economic confidence to 95.9 from a revised 96. Consumers remain pessimistic with their sentiment reading declining from -16 to -17. The broader issues of the region have dim the outlook for future growth and have raised concerns over a double dip recession following last month’s disappointing 1.0% rise in GDP. To discuss this and other topics, please visit the EUR/USD forum.
GBP/USD – The Confederation of British Industry’s (CBI) monthly survey of retailers jumped to +23 from -8 as more participants expect sales to improve. Expectations were for -1 as a weak labor market and rising prices was anticipated to curb spending. The strong results signal that consumers have become more optimistic over future growth which could lead to a surge on domestic growth. The U.K. is already seeing consistent demand from abroad and the combination could help ease the BoE’s concerns over existing downside risks. Therefore, the central bank may need to begin tightening sooner than expected considering that inflation is well above their 2.0% target at 2.9%.To discuss this and other topics, please visit the GBP/USD forum.
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