Good news from the euro-zone’s powerhouse: the number of unemployed dropped by 12K in July after a rise of 7K in June (after revisions). Germany was expected to report a small drop of 5K in the number of unemployed in July, The seasonally adjusted unemployment rate was predicted to remain unchanged at 6.7% and that is the official figure.
EUR/USD was off the lows seen in yesterday but could not settle above 1.34. It traded at 1.3390 and is now marginally higher, closer to the 1.34 magnet line.
Earlier, German retail sales exceeded expectations in June with a rise of 1.3%, above 1.1% predicted. They dropped by 0.6% in the previous month. French consumer spending also came out better than expected with +0.9% instead of 0.3% estimated.
Later in the day, at 9:00 GMT, we have the all important euro-zone inflation numbers for July which are not expected to show any change from June: CPI at 0.5% and Core CPI at 0.8%.
1.3325 is weak support before 1.3295. Resistance above 1.34 stands at 1.3440. For more, see the EURUSD forecast.
