German Unemployment Rises for the Sixth Straight Month
THE TAKEAWAY: German unemployment rises by 9k, better than expected -> Economy weighed down by Euro debt crisis -> Euro trading lower
German unemployment rose for the sixth straight month in September, indicating that the job market has worsened along with a recent slowdown of German economic expansion. Unemployment rose by 9 thousand over September, which was less than an expected rise of 10 thousand people looking for work. July’s rise in unemployment was revised higher to 11 thousand.
However, the unemployment rate (seasonally adjusted) remained at a decades low 6.8%. The amount of people unemployed in Germany now totals 2.91 million, according to the Federal labor Agency.
The German economy has suffered because of the Euro debt crisis, and GDP growth slowed to 0.3% in 2Q. A drop in unemployment would be a positive indicator for GDP growth and therefore most likely positive for the Euro.
The Euro did not respond to the better than expected unemployment numbers, but instead EURUSD continued to drop further away from the key 1.2900 level, following news of declining Spanish bank deposits. Support could be provided at 1.2842, by an upward trend channel starting in July.
EURUSD 15-minute: September 27, 2012
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