German Unemployment Rises Unexpectedly in June
- The German jobless total rose unexpectedly in June; analysts had been expecting a drop.
- However, the unemployment rate was unchanged, as predicted.
Unemployment in Germany, the Euro-Zone’s largest economy, rose by 7,000 to 2.547 million in June, seasonally adjusted. It was the first rise since March last year and compared with the consensus forecast by economists of a 10,000 decline. However, the unemployment rate was steady at 5.7%, as predicted.
The Federal Labor Office blamed the rise on a mild winter but said that employment and companies’ demand for new workers again rose strongly.
There was little response to the data in the markets, where EURUSD continued a decline that began earlier in the session.
Chart: EURUSD Five-Minute Timeframe (June 30 Intraday)
Earlier, there was news of a much larger than forecast rise in German retail sales in May. Month/month sales increased by 0.5% compared with the 0.3% rise predicted and the previous minus 0.2%. Year/year sales surged by 4.8% rather than the 2.8% expected and compared with a 0.4% decline previously.
--- Written by Martin Essex, Analyst and Editor
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