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EUR/USD Unfazed by German Jobs Report, Euro-Zone CPI Data Ahead

EUR/USD Unfazed by German Jobs Report, Euro-Zone CPI Data Ahead

Oded Shimoni, Junior Currency Analyst

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Talking Points:

- The German unemployment rate stable at 6.1%, as expected – record low

- Unemployment down 7K in August versus -4K expected.

- EUR/USD was little changed on the news, short term outlook here

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The Euro was little changed versus other major currencies after today’s German employment data printed better than expected figures.

The German Federal Employment Agency reported that the unemployment rate remained steady in August at 6.1%, as expected by economists, marking a record low.

The Unemployment Change figure beat expectations and signaled a decline of 7K, which was better than the expected call for a 4K drop, with the prior figure revised to -8K print, signaling a new adjusted low of 2.675 million.

The figures seemed to have confirmed that the German labor market remains strong, with one of the lowest unemployment rates in the EU, and seemingly not suffering from Brexit at this point in time.

European Central Bank Executive Board member Benoit Coeure, said at the Jackson Hole Economic Policy Symposium that “if other actors do not take the necessary measures in their policy domains, we may need to dive deeper into our operational framework and strategy to do so.”

In turn, this could imply that if data continues to show a lack of meaningful pickup in the Euro-Zone, the ECB might have to expand easing, potentially portraying a bearish outlook for the currency.

In this context, the German numbers might have been perceived by the market as having limited impact on near term ECB policy bets, with the market potentially looking more at the CPI data later today.

The Euro traded mixed versus other majors, basically unfazed by the data itself, with the EUR/USD picking up slightly at the time of writing, apparently on general US Dollar selling in the short term.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that about 45.16% of traders are long the EUR/USD at the moment.

You can find more info about the DailyFX SSI indicator here

--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com

To contact Oded Shimoni, e-mail oshimoni@dailyfx.com

Follow him on Twitter at @OdedShimoni

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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