The number of the jobless persons in the German labor market dropped for the tenth consecutive month during July, while the unemployment rate held steady at an all-time low 6.10%. In its latest report on the state of the labor economy, Germany’s Federal Statistics Office announced that the rate remained unchanged, matching the consensus estimate of analysts and economists. The number of unemployed people in Germany fell by 7,000 versus the prior month despite being forecast to drop by only 3,000. Preceding the results, the Euro experienced a small pickup, with EUR/USD trending near 1.1103. Although higher before the data, the German DAX 30 Index retreated modestly from its peak of 10,379 after the report, with the equity benchmark approaching its open price, despite still being 0.09% higher from the opening bell.
More movement is anticipated when the German CPI as well as the Harmonized Index of Consumer Prices (HICP) are released at 13:00 GMT. The German Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers. On a monthly basis German CPI is forecasted to increase slightly to 0.20% from the prior readings 0.10% while annualized headline consumer inflation is projected to stay flat at 0.30%. The Harmonized Index of Consumer Prices (HICP) in an index of consumer prices calculated and published by Eurostat, the Statistical Office of the European Union (EU), on the basis of a statistical methodology that has been harmonized across all EU Member States. The German HICP is a measure of prices used by the ECB Governing Council to define and assess price stability in the Euro Area as a whole in quantitative terms. The HICP is designed expressly for international comparisons of consumer price inflation across EMU member states. Both monthly and annualized forecasts for HICP are projected to be bullish at 0.30% up from 0.20% and 0.30% respectively. Any bullish German data could have a positive effect on the DAX 30 as well as the Euro.
DAX 30 Stable After German Unemployment Holds Steady
Market Trends - 28/07/2016