German Unemployment Rate Holding at a 16 Year Low

Daily Forex Fundamentals | Written by DailyFX | Nov 27 08 09:42 GMT |

Germany's November s.a. jobless total dropped 10 K over the month, better than the estimation of -5K and leaving the adjusted jobless rate unchanged at a 16 year low of 7.5%. However, labor office head Weise said the labor market is still stable and demand high, but warned that there are mounting signs that the recession will hit the labor market soon. Indeed some companies have already announced prolonged production suspension over the Christmas period and it is only a matter of time until they start laying off staff, with unemployment likely to rise markedly next year. Meanwhile, Euro-Zone November retail PMI dropped to 40.6 from 44.3 in the previous month. The three months moving average declined to 43.7 from 46.1 in October. German retail sales contracted for a six month, while, French and Italian numbers were all lower and firmly below 50.0, indicating contraction in the sector. The breakdown for the Euro-Zone suggests that company’s gross margins are eroding despite a deceleration in input price inflation. Sales are falling and companies are laying off staff. All in all more data to confirm that the Euro-Zone economy is in recession with no sign of a quick turnaround. Also, Euro-Zone October M3 growth stayed steady at a revised 8.7%. Expectations had been for a marked decline in the annual rate, but it seems liquidity preference and the ECB's generous liquidity allocations is boosting M1 growth, which accelerated to 1.6% y/y from 0.5% y/y in September. M3 growth remains elevated and while for now the ECB argues that this is partly due to special factors with inflation risks from this side declining, there are some at the central bank who warn that rate cuts now will have to be reversed quickly in order to prevent a renewed build up of bubbles. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.