The euro reached a fresh new session high against the US dollar on Wednesday, following the release of optimistic data, regarding Unemployment in Germany and Italy.
EUR/USD hit the highest point for todays session at 1.3290 at 8:00 GMT, after which consolidation followed at 1.3281.
Today it became clear that the number of unemployed people in Germany dropped by 7 000 during July, significantly exceeding preliminary estimates of a drop by 1 000, after in June the number decreased by 13 000, according to revised data. Unemployment rate in Germany remained stable at 6.8% in July, matching expectations and the level, recorded a month ago. This data came amid the strengthening economic growth in Euro zones first economy during Q2, suggesting that labour market will probably continue to improve in the coming months, following the weaker performance, shown at the beginning of the year. Most experts, surveyed by Germanys Bundesbank, expect that countrys Gross Domestic Product will expand considerably in the second quarter of the year, after the weaker results during the first quarter. In Italy, on the other hand, Unemployment rate decreased to 12.1% in June from 12.2% in May, confounding expectations that the indicator will rise to 12.3%.
Additionally, earlier on Wednesday another report showed that German retail sales recorded an unexpected drop in June, as torrential rains at the start of the month probably obstructed consumers shopping. Retail sales decreased by 1.5% in June, erasing completely the climb in May, and marking the largest drop since December 2012. These results came surprisingly, as most economists, surveyed on private sector activity in the country, had expected that the stable labour market and the increasing consumer confidence would prove to be beneficial to retail sales. Statistical office in Germany said that this years June had one working day less in comparison with June last year, as this probably influenced the reported results.
Meanwhile, market participants remained cautious, ahead of FEDs statement on monetary policy later today, and because recent economic data from the United States boosted uncertainty over the future of the Federal Reserve’s stimulus program. It was reported that consumer confidence in the United States declined to a reading of 80.3 in July from 82.1 during the preceding month, while at the same time Standard & Poor’s and Case-Shiller said that their composite index of home prices in 20 major US cities advanced by 12.2% in the month of May on annual basis, slightly below the expected 12.4% rise.
Elsewhere, the euro was still higher against the British pound, as EUR/GBP cross was trading at 0.8731 at 9:15 GMT, advancing 0.29%. EUR/JPY pair was lower, trading at 129.72 at 9:17 GMT, down by 0.25% for the day.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
