Euro Sinks Despite Better-Than-Expected German Jobs Data
- German Unemployment Fell to the Lowest Level Since Sept 2012
- Euro Down as Saxony CPI Prints at 1.2% y/y in Feb vs. 1.4% in Jan
- Spotlight on Germany’s Flash CPI Data Amid ECB Policy Speculation
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German unemployment fell for the third consecutive month to the lowest level since September 2012 in February. Deutsche Bundesbank reported that people out of work decreased by 14,000, beating estimates calling for a drop of 10,000. The unemployment rate remained at 6.8 percent.
The Euro dropped against most of its major peers despite the positive figures as traders considered the policy implication of continued disinflation in the Eurozone’s top economy on the ECB policy outlook. Indeed, the single currency began to slide after CPI data from Saxony – one of the federal states that make up the Republic of Germany – hit a four-month low in February. This foreshadowed a weaker overall German CPI print later in the day, which DailyFX Strategist Ilya Spivak argues could drive a pickup in ECB stimulus expansion speculation.
EUR/USD 5-Minute Chart. February 27, 2014
Charted created by David Maycotte using Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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