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German Unemployment Declines by 27,000
Unemployed German workers saw more job opportunities in December, according to the latest report from the Federal Labor Agency released on Wednesday.
The reported figure revealed a decrease of 27,000 registered unemployed in the given period, after a revised 16,000 fall posted a month ago, official data showed.
The unemployment rate ticked down to 6.5% from 6.6% reported in the previous month.
December inflation subdued
Earlier this week, preliminary inflation numbers for December were released in Germany, showing price growth in Europe's powerhouse failed to pick up and remained stubbornly low.
The German inflation rate declined to a meager 0.2% year-on-year during the final month of the past year, compared to the 0.6% growth seen in November. That's the weakest figure since October 2009.
Low inflation in Germany is adding wrinkles to the foreheads of ECB policymakers especially now as plummeting crude oil prices pose an increased threat of a deflationary spiral taking hold in the 19-nation bloc.
Given these pressures, analysts expect the ECB will announce it would buy sovereign debt as soon as in its next rate-setting meeting on January 22.
source
Euro zone prices fall more than expected in December, likely to trigger ECB action
Euro zone consumer prices fell by more than expected in December because of much cheaper energy, a first estimate by the European statistic office showed in data that is likely to trigger the European Central Bank's government bond buying program.
Eurostat said inflation in the 18 countries using the euro in December was -0.2 percent year-on-year, down from 0.3 percent year-on-year in November. The last time euro zone inflation was negative was in October 2009, when it was -0.1 percent.
Economists polled by Reuters had expected a -0.1 percent year-on-year fall in prices. The ECB wants to keep inflation below but close to 2 percent over the medium term.
Eurostat said that core inflation, which excludes the volatile energy and unprocessed food prices, was stable at 0.7 percent year-on-year in December -- the same level as in November and October.
But energy prices plunged 6.3 percent year-on-year last month and unprocessed food was 1.0 percent cheaper, pulling down the overall index despite a 1.2 percent rise in the cost of services.
The ECB is concerned that a prolonged period of very low inflation could change inflation expectations of consumers and make them hold back their purchases in the hope of even lower prices, triggering deflation.
Because the ECB's interest rates are already at rock bottom, the bank is preparing a program of printing money to buy government bonds on the secondary market to inject even more cash into the economy, boost demand and make prices rise faster.
Economists expect the decision to launch such a bond buying program could be made as soon as the ECB's next meeting on January 22.
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German MinFin Repeats 'No Deflation Mantra' Despite Numbers
Wednesday's price growth figures from the euro area do not change the German finance ministry's view that there is no risk of deflation, a ministry spokesman said.
"We don't have to revise our recent analysis," a spokesman said to media during a regular news conference.
The conference followed the December flash inflation figures from Eurostat which showed negative price growth in the currency bloc for the first time in five years.
The country's finance Minister Wolfgang Schaeuble has said repeatedly in recent months that he saw no risk of deflation in Germany.
Slapped by deflation
Consumer prices in 18 countries paying with the euro (Lithuania joined the bloc on January 1) last month were 0.2% below their December 2013 levels, forcing the hand of the European Central Bank (ECB) ahead of the next rate-setting meeting on January 22. However, core inflation inched up to 0.8% annually, as the major drag on prices was tumbling crude. Energy prices trashed 6.3% in the month.
Several economists reckon that the ECB will announce some form of new QE program later this month, but questions surrounding the move's effectiveness remained in place.
source
thanks for the news
Short-term momentum studies support more falls.
The RSI fell and remained in the oversold territory, after "hitting" on the 30 line resistance, while the MACD remains below the zero line and signal.
R3 - 1.19828
R2 - 1.19393
R1 - 1.18885
Daily Std. Pivot - 1.18450
S1 - 1.17942
S2 - 1.17507
S3 - 1.16999
EURUSD fell during yesterday session, testing the 1.18 level but technically, the pair remains very bearish but also much oversold, leaving us looking for a short-term bullish correction under 1.18, probably toward 1.20 where we once again expect to see sellers as long as the same fundamental environment remains unchanged.
Euro zone retail sales rise 0.6% in November
Retail sales in the euro zone rose more than expected in November, easing concerns over the region’s economic outlook, official data showed on Thursday.
In a report, Eurostat said retail sales increased by a seasonally adjusted 0.6% in November, above forecasts for a gain of 0.1%.
Retail sales rose by 0.6% in October, whose figure was upwardly revised from a previously reported gain of 0.4%.
Year-over-year, retail sales in the euro zone increased at an annualized rate of 1.5% in November from a year earlier, easily surpassing expectations for a 0.2% gain and after rising 1.6% in October.
EUR/USD was trading at 1.1782 from around 1.1781 ahead of the release of the data, while EUR/GBP was at 0.7826 from 0.7825 earlier.
Meanwhile, European stock markets remained broadly higher. The EURO STOXX 50 rallied 1.25%, France's CAC 40 advanced 1.5%, Germany's DAX picked up 1.1%, while London’s FTSE 100 jumped 1.3%.
EUR / USD continued to fall after the known CPI data from the Euro zone.
Deflation began in December.
The positive difference between the price and the RSI discloses a descending deceleration time, and therefore would be prudent about a lowest possible recovery before the next descending phase.
Still short-term outlook remains negative even with the rate negotiating within a downlink channel.
R3 - 1.19828
R2 - 1.19393
R1 - 1.18450
Daily Std. Pivot - 1.18450
S1 - 1.17942
S2 - 1.17507
S3 - 1.16999
Euro Slips Below $1.18 in Longest Slide Since May
The euro slipped below $1.18 for the first time since 2005 as a German report showing factory orders fell in November more than economists predicted buoyed the case for additional European Central Bank stimulus.
Europe’s common currency weakened for a fifth day, the longest stretch since May, as separate data showed producer prices in the region fell in November more than economists expected. A gauge of the dollar was set for its highest close on record before U.S. reports this week that economists said will show an improving labor market. Norway’s krone gained versus all but two of its 16 major peers as oil prices stabilized. Russia’s ruble also advanced.
“A number of large entities and investors around the world are unloading euros because obviously it’s costing them to hang on to them,” said Neil Jones, head of hedge-fund sales at Mizuho Bank Ltd. in London, referring to the impact of the region’s negative deposit rate. “There’s still some room on the downside.”
The euro slipped 0.6 percent to $1.1770 at 7:01 a.m. New York time and reached $1.1763, the weakest level since December 2005. It was little changed at 141.04 yen. The dollar appreciated 0.5 percent to 119.83 yen, extending yesterday’s 0.7 percent advance.
The euro may drop to $1.10 in the next three months, Mizuho’s Jones said. Declines this year so far have pushed the currency to within 0.7 percent of the $1.17 median for the full year in estimates compiled by Bloomberg.
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RSI is oversold and the price keep forming Hammer candles but fail to consolidate. I hope correction will be soon.