Forex News: Euro Erases Gains on Intense Rise in German Unemployment
THE TAKEAWAY: German unemployment rises by 20,000 in October -> German unemployment rate at 6.9% -> Euro reverses gains
The amount of people looking for work in Germany has increased at the fastest pace in 6 months as the unemployment rate remained at an 11-month high. The rise in unemployment during October was 20,000 (seasonally adjusted), double the expected 10,000 person rise in those unemployed, and significantly higher than last month’s revised 12 thousand rise in amount of people looking for work. The unemployment rate remains at 6.9% for the second month, as last month’s rate was revised higher from 6.8%, according to the Federal Labor Agency.
The amount of people out of work in Germany now totals 2.94 million. The German economy has suffered because of the Euro debt crisis, and the GDP only rose 0.3% in the second quarter. Germany is the biggest economy in the Euro and signs of economic suffering are Euro negative in forex markets.
In currency trading, EURUSD erased earlier gains that were made following a Spanish GDP release and retracted from a short term 1.2950 resistance. Support could now be provided by a rising month-long trend line, which is currently near 1.2843.
EURUSD 15-minute: October 30, 2012
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