Germany’s Unemployment Rate Falls To The Lowest Level Since November 2008, 3 Month Euribor Rate Climbs To Fresh Yearly High
Germany’s unemployment rate fell to 7.6 percent for the month of July from 7.7 percent the previous month to mark the lowest since November 2008. At the same time, the number of people out of work tumbled 20K, following a revised 20K decline in June.
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EUR/USD: Germany’s unemployment rate fell to 7.6 percent for the month of July from 7.7 percent the previous month to mark the lowest since November 2008. At the same time, the number of people out of work tumbled 20K, following a revised 20K decline in June. The labor market in Europe’s largest economy seems to be supported by its fiscal stimulus which has boosted domestic demand. Going forward, Germany’s labor market may stabilize around 7.5 percent as governments implement tough austerity measures to battle boiling budget deficit which will impact growth. Meanwhile, economic sentiment in the 16 member euro area topped expectations in July as figures jumped to 101.3 from a upward revision of 99.0 in June, marking the highest level in over 2 years. Additionally, the 3 month euribor rate rose to a yearly high for the second straight day, climbing to 0.899 percent from 0.896 percent yesterday. Looking ahead, as premium on government paper from Portugal, Ireland, and Spain continue to remain high, their banks will likely be shut out of the lending market, and will in turn lead lenders in the bloc to rely on the ECB to keep them afloat. To discuss this and other reports, please visit the EUR/USD forum.
Written by Michael Wright, Currency Analyst
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