German Retail Sales Unexpectedly Falls as Labor Market Deteriorates
Retail spending in German unexpectedly fell 0.2% in February after falling 0.9% in the previous month, which lowered the annualized figure to -5.3%. Meanwhile, the final manufacturing PMI reading for the Euro-Zone fell to 33.9 from an initial reading of 34.0, while the index for Germany held steady at 32.4.
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EURUSD – Retail spending in German unexpectedly fell 0.2% in February after falling 0.9% in the previous month, which lowered the annualized figure to -5.3%. Meanwhile, the final manufacturing PMI reading for the Euro-Zone fell to 33.9 from an initial reading of 34.0, while the index for Germany held steady at 32.4. Finally, a separate report showed that the unemployment rate in the euro-region increased for the seventh consecutive month to 8.5% from a revised reading of 8.3% in January, which was greater than the 8.3% estimate held by economists and the highest reading in three years. The data continue reflect a dour outlook for the European economy as the OECD predict the economy to contract by 4.1% and the jobless rate to reach 10.1% this year, and the European Central Bank is expected to ease policy further in tomorrow’s meeting as growth and inflation falter. Discuss the topic and your trade ideas in the EUR/USD Forum.
GBPUSD – Individuals in U.K. increased the equity in their homes by a net 8 billion pounds, which is the fastest pace of debt repayments since records began in 1970, as the deepening recession encouraged households limit their exposure to debt. Meanwhile, the U.K. manufacturing PMI increased more than expected to 39.1 in February from 34.7 in previous month, which is the highest level since last October. Despite the minor improvement, economic conditions are likely to deteriorate further as OECD expected U.K. economy to contract 3.7% this year and another 0.2% in 2010. Discuss the topic and your trade ideas in the GBP/USD Forum.
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