Euro Traders Unimpressed by a Drop in German Unemployment
THE TAKEAWAY: German unemployment declines by three thousand people in February -> Bundesbank forecasts a return to growth in Q1 -> Euro trading unchanged
German unemployment declined for the third straight month in February, according to the Federal Statistical Office. Unemployment declined by 3 thousand people, beating expectations for no change in employment, but not as good as the revised 14 thousand person drop in unemployment last month. The unemployment rate was reported at 6.9% in February, steady with January’s revised 6.9% number, according to the Federal labor Agency.
The improved German unemployment falls in line with the Bundesbank prediction that the German economy will return to growth in the current quarter on improved industrial production. The European Union predicts 0.5% German growth over the whole of 2013. Signs of German economic growth are Euro positive.
However, the better than expected unemployment release had no significant effect on Euro trading. In fact, EUR/USD has declined towards 1.3100 in the minutes before this writing on a risk-off wave in currency markets. Resistance may be provided by the first monthly pivot support line around 1.3184, and support may continue to be provided by the key 1.3000 level. (To learn how to incorporate overbought/oversold signals into your trading click here.)
EURUSD Daily: February 28, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.