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EUR: better-than-expected German unemployment figures

By Kiran Najran March 1st, 2018

It was a bit of a mixed day for the euro yesterday, as it strengthened against sterling but weakened against the dollar. However, the losses against the greenback weren’t as bad as they threatened to be at one point, while the gains against the pound were more significant. The main release from the eurozone was the German unemployment rate which fell by 22,000 when 17,000 had been expected. Ultimately, the unemployment rate is unchanged at 5.4%.

We also saw the Gfk consumer climate indicator for Germany which slipped to 10.8 points – below consensus of 10.9, but still not far from the more-than-16-year high of 11 posted in February. Meanwhile, inflation in the eurozone dipped to 1.2% in February from 1.3% the month before, which was in line with expectations.

Today we have the unemployment rate for the eurozone, as well as the manufacturing PMI for Germany and the eurozone. Both are expected to dip a little but, if they come in as expected, they will still show impressive strength. But let’s wait and see whether expectations are met.